Will Burberry continue falling, or will it recover to 1979p recent highs?

• Burberry shares -6% this week after Goldman Sachs downgraded it to “Sell”.
• 6 Mar: Goldman says they like the long-term equity story at Burberry.
• 6 Mar: Analysts say they expect more spending to re-invigorate sales.
• Now trades 1866p (at time of writing).
• Shares -5.9% from 2019 highs; +15.8% from 2019 lows; +8.1% year-to-date.
• Can the stock recover to recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Burberry – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards 1979p. You decide to buy exposure to £10,000 worth of Burberry using a CFD, at the current price of 1866p. To do this, you need £2,000.

Let’s assume Burberry recovers back to 1979p recent highs (+6%). Your profit would be £600, 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. Burberry 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.