Will Sports Direct continue falling, or will it rise again back to recent high of 280p?

• Sports Direct shares have fallen over 15% from yesterday’s high following disappointing results.
• Company pointed to weakness in UK retail space, with its results weighed down by Debenhams and House of Fraser investments.
• Shares already bounced over 6% from yesterday’s worst levels. Currently trading at 235p (at time of writing).
• Shares -46% from 2018 highs; +6.5% from 2018 lows; -37% year-to-date.
• Can the stock recover to yesterday’s highs?
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Sports Direct – An Example

Let’s say you feel that the stock is a bargain and you think it could bounce back to recent highs of 280p. You decide to buy exposure to £10,000 worth of Sports Direct using a CFD, at the current price of 235p. To do this, you need £2,000.

Let’s assume Sports Direct recovers back to 280p recent high (+19.1%). Your profit would be £1910, from your initial investment of £2000.

Conversely, let’s assume you open the above position, and place a stop-loss at 8% from the current price. Sports Direct 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.