A range trading opportunity for you?
Will WPP break support, or will it rise again to 910p?
- Shares bounced off rising support 4 times since April.
- Currently trades 875p (at time of writing)
- Will the pattern repeat itself, rising back to recent highs of 910p?
- 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 910p again. You decide to buy exposure to £10,000 worth of WPP using a CFD, at the current price of 875p. To do this, you need £2,000.
Let’s assume WPP rises back to highs of 910p (+4%). Your profit would be £400, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price. WPP falls 2% and hits your stop-loss. Your loss would be £200.
This is provided for information purposes only. It should not be taken as a recommendation.