Will Cineworld continue falling, or will it rise again back to 310.9p?

• Cineworld shares have fallen over 7.5% from yesterday’s highs.
• Shares falling after disappointing trading update.
• Currently trading at 279.6p (at time of writing).
• Shares -8.8% from 2018 highs; +41.1% from 2018 lows; +6.5% year-to-date.
• Recent share price range: Nov highs 310.9p; Nov lows 277p.
• Can the stock recover to November highs?
• Source: Dow Jones, Bloomberg, FT, Company News

Click to enlarge

Trading Cineworld – An Example

Let’s say you feel that the stock is a bargain and you think it could bounce back to November highs of 310.9p. You decide to buy exposure to £10,000 worth of Cineworld using a CFD, at the current price of 279.6p. To do this, you need £2,000.

Let’s assume Cineworld recovers back to 310.9p November highs (+10.8%). Your profit would be £1080, from your initial investment of £2000.

Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price. Cineworld falls 4% and hits your stop-loss. Your loss would be £400.

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