WPP
A range trading opportunity for you?
Will WPP break support, or will it rise back to 898p?
- 797-898p range since November, bounced off floor
- Now trades 834p (at time of writing)
- Will the pattern repeat itself, testing the 898p ceiling?
- Shares -7.0% from 2019 highs; +6.0% from 2019 lows; -1% year-to-date.
- Shares recently fallen on fears of slowing global growth. Overdone?
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Click to enlarge
Trading WPP – An Example
Let’s say you like the range, you think it’s heading back towards 898p again. You decide to buy exposure to £10,000 worth of WPP using a CFD, at the current price of 834p. To do this, you need £2,000.
Let’s assume WPP rises to 898p (+7.6%). Your profit would be £760, 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. WPP 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.