A range trading opportunity for you?

Will WPP break support, or will it rise again back to 1323p?

• Range developed over last 5 months
• Bounced off 1125p zone 7 times. Now trading 1149p (at time of writing)
• Will the pattern repeat itself, testing previous highs?
• Shares -22.2% from 2018 highs; +6.75% from 2018 lows; -14.3% year-to-date
• WPP considering merger of Young & Rubicam and Digital Ad Firm VML (Dow Jones)
• Company adjusting to life after long serving CEO Sir Martin Sorell

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Trading WPP – An Example

Let’s say you like the range, you think it’s heading back towards 1323p again. You decide to buy exposure to £10,000 worth of WPP using a CFD, at the current price of 1149p. To do this, you need £2,000.

Let’s assume WPP recovers back to 1323p (15.1%). Your profit would be £1,514, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. WPP falls 5% and hits your stop-loss. Your loss would be £500.

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