Will Dunelm break support, or will it rise again back to 625p?

• Dunelm has rising support around 572p since June, with 5 bounces, most recently this week.
• Now trading 581p (at time of writing).
• Shares -19% from 2018 highs; +25.8% from 2018 lows; -16.1% year-to-date.
• Will the pattern repeat itself?
• 11 Oct: Dunelm investors cheer Q1 sales beat and margin hike
• 11 Oct:  Dunelm Group Q1 Total Like-For-Like Revenues +4.2%
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading Dunelm – An Example

Let’s say you like the Dunelm support level, you think it’s heading back towards 625p again. You decide to buy exposure to £10,000 worth of Dunelm using a CFD, at the current price of 581p. To do this, you need £2,000.

Let’s assume Dunelm rises back to 625p (+7.5%). Your profit would be £750, 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. Dunelm 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.