A trading opportunity for you?
Will Royal Mail continue falling, or will it recover to 286p recent highs?
- Royal Mail shares -10% in less than 2 weeks.
- Already bounced +1% from Jan lows support at 252p.
- 4 Feb: HSBC upgraded its rating to “Buy”
- Now trades 255p (at time of writing).
- Shares -17.1% from 2019 highs; +3.6% from 2019 lows; -6% year-to-date.
- Can the stock recover to recent highs?
- Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal
Trading Royal Mail – An Example
Let’s say you feel that the stock is a bargain and you think could bounce back towards 286p. You decide to buy exposure to £10,000 worth of Royal Mail using a CFD, at the current price of 255p. To do this, you need £2,000.
Let’s assume Royal Mail recovers back to 286p recent highs (+12.1%). Your profit would be £1210, 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. Royal Mail 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.