Mondi
A trading opportunity for you?
Will Mondi break support, or will it rise again back to 2,250p August highs?
- Mondi has bounced off February support level at 1,758p
- Bounced 3 times, most recently bouncing off the support zone last week.
- Now trading 1,788p (at time of writing)
- Recent results (11 Oct) pleased investors, with pre-tax profit rising 30% YoY thanks to higher selling prices, cost-cutting and M&A.
- Analysts at Jefferies say Mondi is their top pick with the brokerage reiterating a “Buy” rating.
- Will the pattern repeat itself, bouncing up again towards 2,250p recent highs?
- Shares -20% from 2018 highs; +2.5% off 2018 lows; -7.5% year-to date
- 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 2,250p again. You decide to buy exposure to £10,000 worth of Mondi using a CFD, at the current price of 1,788p. To do this, you need £2,000.
Let’s assume Mondi recovers back to 2,250p (+25.8%). Your profit would be £2,580, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss 10% below the current price. Mondi falls 10% and hits your stop-loss. Your loss would be £1,000.
This is provided for information purposes only. It should not be taken as a recommendation.