Is this trend a good trading opportunity?

Will Kingfisher turn, or will it continue to gain momentum toward 276p September highs?

• The chart shows price action in the last week.
• Shares are currently-28.2% away from 2018 highs, but have bounced +8.8% from 2018 lows, -22.2% year-to-date
• Currently trading at 262p (as of the time of writing).
• Recent results (19 Sept) were disappointing, but the shares have rallied back on positive sector read-across from the likes of Next, Boohoo, which pointed to strong summer retail trading (Source: DowJones).
• UK’s Inflation and Retail Sales have been stronger than expected in August.
• Positive recent momentum, +8.2% in the last week. Will the momentum continue?

Click to enlarge

Trading Kingfisher – 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 Kingfisher using a CFD, at the current price of 262p. To do this, you need £2,000.

Let’s assume Kingfisher trend continues to 276p September highs (+5.3%). Your profit would be £530, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 4% below the current price. Kingfisher falls 4% and hits your stop-loss. Your loss would be £400.

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