Will Rightmove continue falling, or will it recover this week’s 486p highs?

• Rightmove shares -7% today after results.
• Letting agent’s profits rose, but it noted the impact of extreme events (e.g. Brexit).
• Company said it sees more growth in 2019.
• Now trades 452p (at time of writing).
• Shares -7.7% from 2019 highs; +5.3% from 2019 lows; +3.85% year-to-date.
• Can the stock recover to recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Rightmove – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards 486p. You decide to buy exposure to £10,000 worth of Rightmove using a CFD, at the current price of 452p. To do this, you need £2,000.

Let’s assume Rightmove recovers back to this week’s 486p highs (+7.5%). Your profit would be £750, 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. Rightmove 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.