Will Kingfisher turn, or will momentum take it towards 2010 lows of 196p?

• The chart shows Kingfisher price action for December.
• Negative momentum for December, shares -20%.
• Will this momentum continue?
• Currently trading at 206p (as of the time of writing).
• Shares -43.4% from 2018 highs; trading 2018 lows; -38.8% year-to-date
• UK Retail Sector under pressure from Brexit uncertainty, online competition, higher physical costs
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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 sell exposure to £10,000 worth of Kingfisher using a CFD, at the current price of 206p. To do this, you need £2,000.

Let’s assume Kingfisher trend continues to 196p 2010 lows (-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% above the current price. Kingfisher rises 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.