A range trading opportunity for you?
Will WPP break support, or will it rise back to 880p?
- Sideways/shallow falling 790-880p channel since late Oct,
- Bounced from support 3 times 802p. Now 815p (at time of writing)
- Will the pattern repeat itself, rising back to 880p?
- Shares -45.5% from 2018 highs; +1.5% from 2018 lows; -3.7% year-to-date
- 5 Feb: WPP is one of Citi’s top UK media picks
- Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal
Trading WPP – An Example
Let’s say you like the WPP range, you think it’s heading back up to 880p again. You decide to buy exposure to £10,000 worth of WPP using a CFD, at the current price of 815p. To do this, you need £2,000.
Let’s assume WPP rises back to 880p (+8.0%). Your profit would be £800, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. WPP falls 3% and hits your stop-loss. Your loss would be £300.
This is provided for information purposes only. It should not be taken as a recommendation.