A trading opportunity for you?
Will Mondi break support, or will it rise again back to 2200p ?
- Mondi has bounced off Feb lows at 1758p
- Bounced 3 times, most recently today. Now trading 1805p (at time of writing)
- Will the pattern repeat itself, bouncing up again towards 2200p?
- Shares -21.1% from 2018 highs; +1.0% from 2018 lows; -6.5% year-to date
- Major paper and packaging manufacturer, formerly owned by Miner Anglo American
- 11 Oct: Mondi says profits 30%, continues to see manageable upward pressure on cost base
- Source: Bloomberg, FT, Reuters, DJ Newswires
Trading Mondi – An Example
Let’s say you like the Mondi trend, you think it’s heading back towards 2200p again. You decide to buy exposure to £10,000 worth of Mondi using a CFD, at the current price of 1805p. To do this, you need £2,000.
Let’s assume Mondi recovers back to 2200p (+21.9%). Your profit would be £2190, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss 4% below the current price. Mondi 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.