Will TalkTalk break support, or will it rise again back to 137p?

• The TalkTalk range has developed since early August.
• Shares bounced off a 112p range floor 6 times. It is now at 116p (at time of writing)
• Will the pattern repeat itself, shares testing previous highs?
• Shares -23.3% from 2018 highs; +32% from 2018 lows; -23.5% year-to-date
• 21 Nov: TalkTalk looks like a prime takeover candidate, says Markets.com
• Source: Dow Jones, Bloomberg, FT, Company News, ALphaTerminal

Click to enlarge

Trading TalkTalk – An Example

Let’s say you like the range, you think it’s heading back towards 137p again. You decide to Buy exposure to £10,000 worth of TalkTalk using a CFD, at the current price of 116p. To do this, you need £2,000.

Let’s assume TalkTalk rises back to range ceiling around 137p (+18.1%). Your profit would be £1810, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 7% from the current price. TalkTalk falls 7% and hits your stop-loss. Your loss would be £700.

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