WPP
A range trading opportunity for you?
Will WPP break support, or will it rise again to 898p?
- Shares bounced from 4-month support zone at 797p.
- Currently trades 808p (at time of writing)
- Will the pattern repeat itself, rising back to recent highs of 898p?
- Shares -10.2% from 2019 highs; +2.4% from 2019 lows; -4.3% year-to-date.
- 19 Mar: In talks with private equity firms about sale of stake in Kantar data analytics unit.
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading WPP – An Example
Let’s say you like the WPP range, you think it’s heading back up to 898p again. You decide to buy exposure to £10,000 worth of WPP using a CFD, at the current price of 808p. To do this, you need £2,000.
Let’s assume WPP rises back to highs of 898p (+11.1%). Your profit would be £1110, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price. WPP 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.