Will Cineworld break lower, or will it rise to 325p again?

• The Cineworld trading range developed since early August.
• Shares bounced back from support zone around 265p, most recently last week.
• Now trading 278.4p (at time of writing).
• Will the pattern repeat itself, testing previous highs?
• Shares -14.4% from 2018 highs; +32.5% from 2018 lows; -5.1% year-to-date
• 15 Nov: Brokers at Barclays say that lower than anticipated cinema openings in the first half will have little impact on profits.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal, CMC Markets

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Trading Cineworld – An Example

Let’s say you like the Cineworld range, you think it’s heading back towards 325p again. You decide to buy exposure to £10,000 worth of Cineworld using a CFD, at the current price of 278.4p. To do this, you need £2,000.

Let’s assume Cineworld rises back to 325p (+16.7%). Your profit would be £1670, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 8% from the current price. Cineworld falls 8% and hits your stop-loss. Your loss would be £800.

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