Will Paddy Power Betfair turn, or will it continue to rise to Nov highs of 7252p?

• Double Breakout above 6270p and 6460p to trade 6497p (at time of writing).
• The ‘trend is your friend’. Will it continue towards 7252p?
• Shares -30.1% from 2018 highs; +7.0% from 2018 lows; +1.6% year-to-date.
• 1 Feb: PPB buys 51% stake in Adjarabet; has option to buy rest
• 10 Jan: PPB strikes deal with GAN to expand Paddy Power’s FanDuel Business
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Paddy Power Betfair – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue to 7252p . You decide to buy exposure to £10,000 worth of Paddy Power using a CFD, at the current price 6497p (at time of writing). To do this, you need £2,000.

Let’s assume the Paddy Power trend continues upwards to 7252p Nov highs (+11.6%). Your profit would be £1160, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 6% from the current price. Paddy Power breaks lower, falling 5% and it hits your stop-loss. Your loss would be £500.

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