Will JD Sports break lower, or will it rise to 440p again?

• The JD Sports trading range has developed since late September.
• Shares bounced from support zone at 374p.
• Now trading 400p (at time of writing).
• Will the pattern repeat itself, testing previous highs?
• Shares -26.1% from 2018 highs; +21.3% from 2018 lows; +19.0% year-to-date
• 12 Nov: Berenberg starts coverage at Buy, target 530p, says Sports Direct will lose out to JD Sports
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal, CMC Markets

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Trading JD Sports – An Example

Let’s say you like the JD Sports range, you think it’s heading back towards 440p again. You decide to buy exposure to £10,000 worth of JD Sports using a CFD, at the current price of 400p. To do this, you need £2,000.

Let’s assume JD Sports rises back to 440p (+10%). Your profit would be £1000, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. JD Sports falls 5% and hits your stop-loss. Your loss would be £500.

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