Will Whitbread break support, or will it rise again back to 4779p (+5.5%)?

• 4464-4779p range;  Bounced off support 5 times 
• Now 4529p (at time of writing)
• Will the pattern repeat itself, rising back to 4779p (+5.5%)?
• Shares -12.4% from 2019 highs; +1.9% from 2019 lows; -1.2% year-to-date
• 19 Jun: Q1 falls short, may become a takeover target says Citigroup
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Whitbread – An Example

Let’s say you like the range, you think it’s heading back towards 4779p again. You decide to buy exposure to £10,000 worth of Whitbread using a CFD, at the current price of 4529p. To do this, you need £2,000.

Let’s assume Whitbread recovers back to 4779p (+5.5%). Your profit would be £550, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price. Whitbread falls 2% and hits your stop-loss. Your loss would be £200.

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