Will Cineworld  continue falling, or will it recover to 322p highs?

• Rising support since Dec; 5 bounces
• Shares -14% from April highs; Bounce off 275p support.
• Now trading 278p (at time of writing)
• Will the pattern repeat itself, rising back to recent highs of 322p (+15.8%)
• Shares at -13.7% from 2019 highs; +11.3% from 2019 lows; +5.7% year-to-date.
• 13 Jun: Cineworld sells more US cinemas; Declares special dividend
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Cineworld  – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards 322p . You decide to buy exposure to £10,000 worth of Cineworld using a CFD, at the current price of 278p. To do this, you need £2,000.

Let’s assume Cineworld  recovers back to 322p highs (+15.8%). Your profit would be £1580, 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. Cineworld falls 4% and hits your stop-loss. Your loss would be £400.

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