Will Cineworld turn, or will it continue to rise to Apr/May highs of 322p?

• Shares +3% from this week’s lows; Now trading 309p (at the time of writing).
• Will the positive momentum continue towards April highs of 322p?
• Shares -4% from 2019 highs; +23.8% from 2019 lows; +17.6% year-to-date.
• 15 May: Revenue will be main event for investors says Citi
• 15 May: Agrees sale, leaseback of 17 US cinemas; mulls special dividends
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Cineworld – An Example

Let’s say the trend appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of Cineworld using a CFD, at the current price of 309p. To do this, you need £2,000.

Let’s assume the Cineworld trend continues to April highs of 322p (+4.2%). Your profit would be £420, 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. Cineworld 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.