Will Dixons Carphone continue falling, or will it rise again back to 165p December highs?

• Dixons Carphone shares have fallen over 31% since early December.
• Shares already over 6% off their worst levels. Currently trades 120p (at the time of trading).
• Shares almost -1.7% from 2019 highs; +2.5% from 2019 lows; +1% year-to-date.
• Positive Christmas updates from John Lewis and Next are helping retailers recover from Nov-Dec falls.
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Dixons Carphone – An Example

Let’s say you feel that the stock is a bargain and you think it could bounce back to December high of 165p. You decide to buy exposure to £10,000 worth of Dixons Carphone using a CFD, at the current price of 120p. To do this, you need £2,000.

Let’s assume Dixons Carphone recovers back to 165p (+37.5%). Your profit would be £3750, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 8% from the current price. Dixons Carphone falls 8% and hits your stop-loss. Your loss would be £800.

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