Carnival
Is this an opportunity to take a position ahead of the results?
Carnival reports results on Thursday (27th Sept)
- The chart shows the price movement last time Carnival reported (25 June).
- The shares opened 69p lower and closing 528p down (-11.1%).
- Shares fell after FY profit outlook was cut despite company beating expectations.
- Shares +17.5% from 2018 lows, -2.79% from 2018 highs, +1% YTD.
- Recent share price range: September lows 4,570p; September highs 5,008p. Currently 4,957p (at time of writing).
- Carnival will issue a third-quarter results on Thursday (27 Sept). Will we see another big move?
Trading Carnival – An Example
Let’s say you think that Carnival results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of Carnival using CFDs, at the current price of 4,957p. To do this, you need £2,000.
For the purpose of this example, let’s assume Carnival reports strong results and the shares rise 7%. Your profit would be £700, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss 5% below the current price. Carnival results miss, it falls 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.