A trading opportunity for you?
Will Cineworld continue falling, or will it recover to 322p highs (+28%)?
- Rising support since June 2018
- Shares -22% from April highs; Bounce off 249p support.
- Now trading 251p (at time of writing)
- Will the pattern repeat itself, rising back to recent highs of 322p (+28%)
- Shares at -22% from 2019 highs; +0.7% from 2019 lows; -4.5% year-to-date.
- 13 Jun: Cineworld sells more US cinemas; Declares special dividend
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Cineworld – An Example
Let’s say you feel that the stock is a bargain and you think could bounce back towards 322p . You decide to buy exposure to £10,000 worth of Cineworld using a CFD, at the current price of 251p. To do this, you need £2,000.
Let’s assume Cineworld recovers back to 322p highs (+21%). Your profit would be £2100, 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. Cineworld 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.