Will DS Smith turn, or will momentum take it towards 2014 lows of 216p?

• The chart shows DS Smith price action since October.
• Negative momentum for Q4, shares -41%.
• Will this momentum continue?
• Currently trading at 293p (as of the time of writing).
• Shares -45.4% from 2018 highs; +3.5% from 2018 lows; -39.3% year-to-date
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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 exposure to £10,000 worth of DS Smith using a CFD, at the current price of 293p. To do this, you need £2,000.

Let’s assume DS Smith trend continues to 216p 2014 lows (-26.3%). Your profit would be £2630, 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. DS Smith rises 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.