Will B&M European Value Retail break support, or will it rise again back to 435p 2018 highs?

• B&M European Value Retail shares bounced off long-term rising resistance-turned-support.
• Rising support in play since 2015, turned resistance in 2016 and now transitioned back to support.
• Most recent bounce off rising support last week.
• Now trading 350p (at time of writing).
• Shares -20.2% from 2018 highs; +3.8% from 2018 lows; -17.5% year-to-date.
• Will the pattern repeat itself, with the shares bouncing off support again?
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading B&M – An Example

Let’s say you like the B&M chart and you think the price is heading back towards 435p again. You decide to buy exposure to £10,000 worth of B&M using a CFD, at the current price of 350p. To do this, you need £2,000.

Let’s assume B&M rises back to 435p (+24.3%). Your profit would be £2430, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 7% from the current price. B&M falls 7% and hits your stop-loss. Your loss would be £700.

This is provided for information purposes only. It should not be taken as a recommendation.