Will Dunelm turn, or will it continue to rise to June 2016 highs around 994p?

• Shares +66.6% since mid-December.
• 15 Feb: UBS says Dunelm’s is well-positioned for future market-share gains.
• Now trading 790p (at the time of writing).
• Will the positive momentum continue towards 994p?
• Shares trading at 2019 highs; +44.8% from 2019 lows; +46.5% year-to-date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Dunelm – 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 Dunelm using a CFD, at the current price of 790p. To do this, you need £2,000.

Let’s assume the Dunelm trend continues to June 2016 highs around 994p(+25.8%). Your profit would be £2580, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 7% from the current price. Dunelm falls 7% and hits your stop-loss. Your loss would be £700.

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