Will Cineworld continue falling, or will it rise again back to this week’s 282p highs?

• Cineworld shares have fallen 10% from Monday’s highs.
• Shares falling after a mixed trading update (16 Jan).
• Overall revenue grew, driven by US market, but UK sales fell -0.6% YoY.
• Currently trading at 257.8p (at time of writing).
• Shares -10.4% from 2019 highs; +3.1% from 2019 lows; -1.6% year-to-date.
• Can the stock recover to November highs?
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Cineworld – An Example

Let’s say you feel that the stock is a bargain and you think it could bounce back to this week’s 282p highs. You decide to buy exposure to £10,000 worth of Cineworld using a CFD, at the current price of 257.8p. To do this, you need £2,000.

Let’s assume Cineworld recovers back to 282p (+9.3%). Your profit would be £930, from your initial investment of £2000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Cineworld 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.