Will Next continue falling, or will it rise again back to 5500p?

• Next shares have fallen over 25-30% since mid-November
• Currently trading 4030p (at time of writing)
• The retail sector has been buffeted by profits warnings  from the likes of ASOS
• Will Next’s Christmas trading update (next Thursday) help revive the share price?
• Shares -35.4% from 2018 highs; +1.2% now from 2018 lows; -11% year-to-date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Next – An Example

Let’s say you feel that the stock is a bargain and you think it could bounce back to recent highs of 5500p. You decide to buy exposure to £10,000 worth of Next using a CFD, at the current price of 4030p. To do this, you need £2,000.

Let’s assume Next recovers back to 5500p (+36.5%). Your profit would be £3650, 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. Next falls 6% 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.