DS Smith
A trading opportunity for you?
Will DS Smith break support, or will it rise again to 373p?
- Support since late-January, latest bounce at 315p
- 9 May: UK 100 Drops as Packaging Companies, BT Drop – Market Talk
- Now trading 329p (at time of writing).
- Will the pattern repeat, the shares climbing back towards 373p?
- Shares -11.8% from 2019 highs; +12.9% from 2019 lows; +10.1% 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 373p again. You decide to buy exposure to £10,000 worth of DS Smith using a CFD, at the current price of 329p. To do this, you need £2,000.
Let’s assume DS Smith rises back to 373p rising channel ceiling (+13.3%). Your profit would be £1330, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. DS Smith falls 5% and hits your stop-loss. Your loss would be £500.
This is provided for information purposes only. It should not be taken as a recommendation.