Will JD Wetherspoon break resistance, or will it fall back to 1103p?

• 1103-1338p range since April ’18, trading off the top of the range
• 5 bounces off 1338p resistance zone, most recently this week.
• Now trades 1280p (at time of writing)
• Will the pattern repeat itself, testing previous 1103p range floor?
• Shares -4.5% from 2019 highs; +19.5% from 2019 lows; +15% year to date
• 23 Jan: Pub chain said its H1’19 proft will be below last year’s after higher costs.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading JD Wetherspoon – An Example

Let’s say you like the range, you think it’s heading back towards 1103p again. You decide to sell exposure to £10,000 worth of JD Wetherspoon using a CFD, at the current price of 1280p. To do this, you need £2,000.

Let’s assume JD Wetherspoon fall back to 1103p (-13.8%). Your profit would be £1380, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price. JD Wetherspoon rises 4% and hits your stop-loss. Your loss would be £400.

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