Will Dixons Carphone continue falling, or will it rise again back to 156p last week’s highs?

• Dixons Carphone shares -15% from last week’s highs.
• Bouncing off 4-week resistance-turned-support around 132p.
• Now trades 132p (at time of writing).
• Shares -14% from 2019 highs; +15.5% from 2019 lows; +10.8% year-to-date.
• Can the stock recover to recent highs?
• 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 could bounce back towards recent high of 156p. You decide to buy exposure to £10,000 worth of Dixons Carphone using a CFD, at the current price of 132p. To do this, you need £2,000.

Let’s assume Dixons Carphone recovers back to 156p last week’s highs (+18.2%). Your profit would be £1820, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 6% from the current price. Dixons Carphone falls 6% and hits your stop-loss. Your loss would be £600.

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