Will Marks & Spencer continue falling, or will it rise again back to 306p recent highs?

• Marks & Spencer shares -10.7% from recent highs; -7% today.
• 27 Feb: Retailer announced a rights issue to fund its JV with Ocado
• 27 Feb: Cut dividend -40% to more sustainable levels.
• Shares bouncing off 273p mid-Jan support zone (+2.2% off lows).
• Now trades 279p (at time of writing).
• Shares -8.8% from 2019 highs; +14.8% from 2019 lows; +13.4% year-to-date.
• Can the stock recover to recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Marks & Spencer – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards 306p. You decide to buy exposure to £10,000 worth of Marks & Spencer  using a CFD, at the current price of 279p. To do this, you need £2,000.

Let’s assume Marks & Spencer recovers back to last week’s highs of 306p (+5.3%). Your profit would be £530, 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. Marks & Spencer 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.