Will Dignity continue falling, or will it rise again back to 1124p November highs?

• Dignity share price has fallen to as low as 827p (-17.8%) today.
• Now trading at 866p (at the time of writing).
• Shares are down over -34.9% from 2018 highs, +17.5% from 2018 lows, -52.7% year-to-date.
• Shares in funeral services provider falling after a report that CMA was conducting a major investigation into funeral price rises.
• Can the shares regain recent highs?
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading Dignity – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards 1124p. You decide to buy exposure to £10,000 worth of Dignity using a CFD, at the current price of 866p. To do this, you need £2,000.

Let’s assume Dignity recovers back to November highs of 1124p (+29.8%). Your profit would be £2980, 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. Dignity 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.