Will WPP continue falling, or will it rise again back to 890p last week’s highs?

• WPP shares -11% from last week’s highs; -1% today.
• Media company’s shares falling after disappointing results from rival Publicis.
• Now trades 792p (at time of writing).
• Shares -11.2% from 2019 highs; trading at 2019 lows; -6% year-to-date.
• Can the stock recover to recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading WPP – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards recent high of 890p. You decide to buy exposure to £10,000 worth of WPP using a CFD, at the current price of 792p. To do this, you need £2,000.

Let’s assume WPP recovers back to 890p last week’s highs (+12.3%). Your profit would be £1230, 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. WPP 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.