Will Merlin continue falling, or will it recover to 372p recent highs?

• Merlin shares -10% in one week after a broker downgrade on 21 Mar.
• Shares testing late January support.
• Now trades 339p (at time of writing).
• Shares -8.9% from 2019 highs; +8.9% from 2019 lows; +7% year-to-date.
• Can the stock recover to recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Merlin – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards 372p recent highs. You decide to buy exposure to £10,000 worth of Merlin using a CFD, at the current price of 339p. To do this, you need £2,000.

Let’s assume Merlin recovers back to 372p recent highs (+9.7%). Your profit would be £970, 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. Merlin 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.