A range trading opportunity for you?

Will Carnival break lower, or will it rise back again to 5,008p?

• The Carnival range has developed since May.
• Bounced off 4,225p support zone 4 times. Now trading 4,385p (at time of writing).
• Cruise company recently launched an extensive fleet enhancement programme.
• It also plans to launch more fuel-efficient ships powered by natural gas, helping the cruise line hedge against rising fuel prices.
• Will the pattern repeat itself, testing previous highs?
• Shares -14% from 2018 highs; +3.9% from 2018 lows; -10.34% year-to-date
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading Carnival – An Example

Let’s say you like the Carnival range, you think it’s heading back towards 5,008p again. You decide to buy exposure to £10,000 worth of Carnival using a CFD, at the current price of 4,385p. To do this, you need £2,000.

Let’s assume Carnival rises back to 5,008p (+14.2%). Your profit would be £1,420, 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. Carnival 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.