Dixons Carphone
A trading opportunity for you?
Will Dixons Carphone break support, or will it rise again to 157p?
- Rising support since Christmas, latest bounce at 129p
- Now trading 138p (at time of writing).
- Will the pattern repeat, the shares climbing back towards 157p?
- Shares -11.4% from 2019 highs; +18.9% from 2019 lows; +15.1% 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 157p again. You decide to buy exposure to £10,000 worth of Dixons Carphone using a CFD, at the current price of 138p. To do this, you need £2,000.
Let’s assume Dixons Carphone rises back to 157p highs (+13.7%). Your profit would be £1370, 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.