Will JD Wetherspoon turn, or will it continue to rise to Nov highs around 1338p?

• Shares +21.5% since early December.
• 6 Feb: Berenberg says shares look too cheap as the chain delivers steady growth
• Now trading 1276p (at the time of writing).
• Will the positive momentum continue towards 1338p?
• Shares trading at 2019 highs; +18.3% from 2019 lows; +14.6% year-to-date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading JD Wetherspoon – 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 JD Wetherspoon using a CFD, at the current price of 1276p. To do this, you need £2,000.

Let’s assume the JD Wetherspoon trend continues to Nov highs around 1338p (+4.8%). Your profit would be £480, 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. JD Wetherspoon 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.