A trading opportunity for you?

Will Merlin Entertainments continue falling, or will it rise again back to 407p October highs?

• Merlin Entertainments shares have fallen 11% in the week to trade 341p (at time of writing).
• Shares almost -11% from 2018 highs; +16.6% from 2018 lows; -6% year-to-date.
• Latest reported revenue (+4.7% YTD) was behind market consensus (+4.9% YTD), disappointing investors.
• Full-year results are expected in line with prior expectations and there are “early signs” of recovery in London tourism market over the summer.
• Source: Dow Jones, Bloomberg, FT, Company News

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Trading Merlin Entertainments – An Example

Let’s say you feel that the stock is a bargain and you think it could bounce back to recent highs of 407p. You decide to buy exposure to £10,000 worth of Merlin Entertainments using a CFD, at the current price of 341p. To do this, you need £2,000.

Let’s assume Merlin Entertainments recovers back to 407p (+19.3%). Your profit would be £1,930, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 10% from the current price. Merlin Entertainments 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.