Whitbread
Is this breakout a good trade for you?
Will Whitbread turn, or will it continue to rise towards 5200p?
- Breakout above 4592p; Now trading 4621p (at time of writing).
- Could they recover to their channel ceiling highs around 5200p
- Shares -10.5% from 2019 highs; +4.1% from 2019 lows; +0.9% year-to-date
- 31 May: Whitbread proposes £2B return of capital (part 2 of 3)
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Whitbread – An Example
Let’s say the breakout appeals to you, you think it’s likely to continue towards 5200p. You decide to buy exposure to £10,000 worth of Whitbread using a CFD, at the current price of 4621p. To do this, you need £2,000.
Let’s assume the Whitbread trend continues to highs of 5200p (+12%). Your profit would be £1200, 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. Whitbread breaks lower, falling 4% and it hits your stop-loss. Your loss would be £400.
This is provided for information purposes only. It should not be taken as a recommendation.