Will ITV turn, or will it continue to fall to March 2013 lows of 120p?

• The chart shows the ITV price action since late November.
• Shares in a monthlong downtrend from 154p late November highs; now at 127p.
• 16 Nov: HSBC says ITV’s advertising momentum is clearly not improving.
• Shares -28.2% from 2018 highs; now trading at from 2018 lows; -23% year-to-date
• In the last 4 weeks, the shares have fallen over 15%.
• Will this negative momentum continue?
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading ITV – An Example

Let’s say the trend appeals to you, you think it’s likely to continue. You decide to sell short exposure to £10,000 worth of ITV using a CFD, at the current price of 127p. To do this, you need £2,000.

Let’s assume the ITV trend continues to March 2013 lows of 120p (-5.5%). Your profit would be £550, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. ITV rises 3% and hits your stop-loss. Your loss would be £300.

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