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

Click to enlarge

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.