Will Mitchells Butler break lower, or will it rise back to 276p highs again?

• Mitchells & Butler shares are trading in 246-276p range since August.
• Bounced from support zone 4 times, most recently this week.
• The shares also have rising support going back 18 months
• Now trading 254p (at time of writing)
• Will the pattern repeat itself, testing previous lows?
• Shares -12.7% from 2018 highs; +8.6% from 2018 lows; -10.4% year-to-date
• 22 Nov: Mitchells Butler move to eschew dividend may pay off says Citi
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Mitchells & Butler – An Example

Let’s say you like the range, you think it’s heading back towards 276p again. You decide to buy exposure to £10,000 worth of Mitchells & Butler using a CFD, at the current price of 254p. To do this, you need £2,000.

Let’s assume Mitchells & Butler rises back to 276p (+8.7%). Your profit would be £870, 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. Mitchells & Butler falls 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.