A range trading opportunity for you?
Will WH Smith break lower, or will it rise back to 2100p highs again?
- WH Smith is trades a ranges since September
- Bounced from 1695p support zone 4 times, most recently this week.
- Now trading 1751p (at time of writing)
- Will the pattern repeat itself, testing previous highs?
- Shares -25.1% from 2018 highs; +4.4% from 2018 lows; -25.7% year-to-date
- Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal
Trading WH Smith – An Example
Let’s say you like the range, you think it’s heading back towards 2100p again. You decide to buy exposure to £10,000 worth of WH Smith using a CFD, at the current price of 1751p. To do this, you need £2,000.
Let’s assume WH Smith rises back to 2100p (-19.9%). Your profit would be £1990, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. WH Smith rises 5% and hits your stop-loss. Your loss would be £500.
This is provided for information purposes only. It should not be taken as a recommendation.