A trading opportunity for you?
Will Halfords continue falling, or will it rise again back to 278p yesterday’s close?
- Halfords share price rebounding over +14% after falling as low as -28% at today’s market open.
- The retailer issued a profits warning, cutting 2019 profit guidance to £58-62m.
- Now expects weak consumer confidence, but still confident in cash flow to cover dividends.
- Now trading at 226p (at the time of writing).
- Shares -19.3% from 2019 highs, +14% from 2019 lows, -11.5% year-to-date.
- Can the shares regain recent highs?
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Halfords – An Example
Let’s say you feel that the stock is a bargain and you think could bounce back towards 278p. You decide to buy exposure to £10,000 worth of Halfords using a CFD, at the current price of 226p. To do this, you need £2,000.
Let’s assume Halfords recovers back to 278p last week’s highs (+23%). Your profit would be £2300, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 8% from the current price. Halfords falls 8% and hits your stop-loss. Your loss would be £800.
This is provided for information purposes only. It should not be taken as a recommendation.