A trading opportunity for you?
Will DS Smith break support, or will it rise again to 361p?
- Uptrend and rising support since mid-Dec, latest bounce at 330p
- 22 Jan: Completed acquisition of continental packaging rival Europac
- Now trading 338p (at time of writing).
- Will the pattern repeat, the shares climbing back towards 361p?
- Shares -5.7% from 2019 highs; +14.7% from 2019 lows; +12.8% year-to-date.
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading DS Smith – An Example
Let’s say you like the DS Smith chart and you think the price is heading back towards 361p again. You decide to buy exposure to £10,000 worth of DS Smith using a CFD, at the current price of 338p. To do this, you need £2,000.
Let’s assume DS Smith rises back to 361p rising channel ceiling (+6.8%). Your profit would be £680, 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. DS Smith 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.