A range trading opportunity for you?

Will Whitbread break lower, or will it rise back again to 4,745p?

• The Whitbread range has developed since September.
• Bounced off 4,505p support zone 3 times. Now trading 4,556p (at time of writing).
• Will the pattern repeat itself, testing previous highs?
• Whitbread recently sold Costa Coffee to Coca-Cola.
• Shares -5% from 2018 highs; +26.4% from 2018 lows; +13.85% year-to-date
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading Whitbread – An Example

Let’s say you like the Whitbread range, you think it’s heading back towards 4,745p again. You decide to buy exposure to £10,000 worth of Whitbread using a CFD, at the current price of 4,556p. To do this, you need £2,000.

Let’s assume Whitbread rises back to 4,745p (+4.1%). Your profit would be £410, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Whitbread falls 3% and hits your stop-loss. Your loss would be £300.

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