A trading opportunity for you?
Will Dixons Carphone break support, or will it rise again to 160p?
- Rising support since Christmas, latest bounce at 128p
- Now trading 132p (at time of writing).
- Will the pattern repeat, the shares climbing back towards 160p?
- Shares -44.5% from 2018 highs; +15.2% from 2018 lows; +10.2% year-to-date.
- 28 Jan: Morgan Stanley says shares oversold, upgrades to overweight, ups target to 240p
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Dixons Carphone – An Example
Let’s say you like the Dixons Carphone chart and you think the price is heading back towards 160p again. You decide to buy exposure to £10,000 worth of Dixons Carphone using a CFD, at the current price of 132p. To do this, you need £2,000.
Let’s assume Dixons Carphone rises back to 160p highs (+21.2%). Your profit would be £2120, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price. Dixons Carphone falls 4% and hits your stop-loss. Your loss would be £400.
This is provided for information purposes only. It should not be taken as a recommendation.