A range trading opportunity for you?
Will WPP break resistance, or will it fall back towards 782p?
- 782-895p falling range since November, trading back from ceiling
- Now trades 856p (at time of writing)
- Will the pattern repeat itself, falling back towards 782p ?
- Shares -5.1% from 2019 highs; +8.1% from 2019 lows; +1.0% year to date
- Concerns about slowing global growth would hit advertising budgets
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading WPP – An Example
Let’s say you like the range, you think it’s heading back towards 782p again. You decide to sell exposure to £10,000 worth of WPP using a CFD, at the current price of 856p. To do this, you need £2,000.
Let’s assume WPP fall back to 782p (-8.5%). Your profit would be £850, 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 rises 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.