Will Rank break support, or will it rise again back to 195p summer highs?

• Rank has a long-term 151p support zone since May 2014, bouncing 8 times, most recently yesterday.
• Now trading 154p (at time of writing).
• Shares -39.2% from 2018 highs; now trading at 2018 lows; -36.1% year-to-date.
• Will the pattern repeat itself, with the shares bouncing off support again?
• 1 Nov: Rank, a UK-based casino operator, appointed William Floydd as CFO, effective 12 Nov
• 18 Oct: Latest results saw revenue decline 4.9% YoY, but the casino group identified early cost savings as part of the transformation.
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading Rank – An Example

Let’s say you like the Rank chart and you think the price is heading back towards 195p again. You decide to buy exposure to £10,000 worth of Rank using a CFD, at the current price of 154p.  To do this, you need £2,000.

Let’s assume Rank rises back to 195p (+26.6%). Your profit would be £2660, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 9% from the current price. Rank falls 9% and hits your stop-loss. Your loss would be £900.

This is provided for information purposes only. It should not be taken as a recommendation.