Carnival
A range trading opportunity for you?
Will Carnival break support or will it rise back to 4000p (+16%)?
- 3325-4000p falling range; Now 3418p (at time of writing)
- Will the pattern repeat itself, the shares rising back to 4000p (+16%) ?
- Shares -23% from 2019 highs; +2.1% from 2019 lows; -9% year-to-date
- 20 Jun: Shares drop on profits warning; some broker downgrades
- Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal
Trading Carnival – An Example
Let’s say you like the range, you think it’s heading back towards 4000p again. You decide to buy exposure to £10,000 worth of Carnival using a CFD, at the current price of 3418p. To do this, you need £2,000.
Let’s assume Carnival recovers to 4000p (+16%). Your profit would be £1600, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Carnival falls 5% and hits your stop-loss. Your loss would be £500.
This is provided for information purposes only. It should not be taken as a recommendation.