Will WPP turn, or will it fill the gap to 1018p?

• Breakout above 898p to trade 934p  (at time of writing).
• The ‘trend is your friend’. Will it continue towards 1018p?
• Shares at 2019 highs; +18.1% from 2019 lows; +10.3% year-to-date.
• 1 Apr: WPP raised to Buy From Hold at Deutsche Bank
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading WPP – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue to 1018p . You decide to buy exposure to £10,000 worth of WPP using a CFD, at the current price 934p (at time of writing). To do this, you need £2,000.

Let’s assume the WPP trend continues upwards to 1018p (+8.9%). Your profit would be £890, 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 breaks lower, falling 3% and it hits your stop-loss. Your loss would be £300.

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