Will Domino’s Pizza continue falling, or will it recover to 285p Jan highs?

• Domino’s Pizza shares as low as -22% from January highs.
• Already bounced +6.8% from March lows support around 221p.
• Now trades 235p (at time of writing).
• Shares -17.4% from 2019 highs; +6.7% from 2019 lows; +1.2% year-to-date.
• Can the stock recover to recent highs?
• 13 Mar: Citi says Domino’s Pizza shares have become more attractive as they have fallen.
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Domino’s Pizza – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards 285p. You decide to buy exposure to £10,000 worth of Domino’s Pizza using a CFD, at the current price of 235p. To do this, you need £2,000.

Let’s assume Domino’s Pizza recovers back to 285p Jan highs (+21.2%). Your profit would be £2120, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 7% from the current price. Domino’s Pizza falls 7% and hits your stop-loss. Your loss would be £700.

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