Will DS Smith turn, or will it continue to fall below June 2016’s 331p lows ?

• The chart shows DS Smith price action since August.
• Shares -35% from 2018 highs; +1.1% from 2018 lows; -27.7% year-to-date.
• Currently trading at 347p (at time of writing).
• Shares have fallen over 15% in the past month. Will this momentum continue?
• Recent share price range: Oct highs 491p; Nov lows 340p.
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading DS Smith – An Example

Let’s say the trend appeals to you, you think it’s likely to continue. You decide to sell short exposure to £10,000 worth of DS Smith using a CFD, at the current price of 347p. To do this, you need £2,000.

Let’s assume the DS Smith trend continues to June 2016 lows of 331p (-4.3%). Your profit would be £430, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. DS Smith rises 3% and hits your stop-loss. Your loss would be £300.

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