Will DS Smith continue falling, or will it rise again back to 354p recent highs?

• DS Smith share price as low as -5% today, close to -12% from this week’s highs.
• Now trading at 313p (at the time of writing).
• Shares falling after latest half-year results.
• Group revenue rose, but Plastics lagged overall group after higher polymer prices.
• DS Smith now looking to sell its Plastics division.
• Shares are down over -39% from 2018 highs, +1.3% from 2018 lows, -35.7% year-to-date.
• Can the shares regain recent highs?
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading DS Smith – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards 354p. You decide to buy exposure to £10,000 worth of DS Smith using a CFD, at the current price of 313p. To do this, you need £2,000.

Let’s assume DS Smith recovers back to recent highs of 354p (+13%). Your profit would be £1300, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price. DS Smith 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.