Will DCC break support, or will it rise again to 6840p?

• Rising support since November; latest bounce off 6280p
• Bounced 4 times to trade 6442p (at time of writing)
• Will the pattern repeat itself, rising back to recent highs of 6840p?
• Shares -5.7% from 2019 highs; +13.7% from 2019 lows; +7.7% year-to-date.
• 5 Feb: DCC sees FY 2019 operating profit in line with market consensus
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading DCC – An Example

Let’s say you like the DCC range, you think it’s heading back up to 6840p again. You decide to buy exposure to £10,000 worth of DCC using a CFD, at the current price of 6442p. To do this, you need £2,000.

Let’s assume DCC rises back to Feb highs 6840p (+6.1%). Your profit would be £610, 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. DCC 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.