Will Marks & Spencer turn, or will it continue to fall to September 2008 lows of 192p?

• The chart shows the Marks & Spencer price action since late November.
• Shares in a 3 week downtrend from 314p November highs; now at 261p.
• 28 Nov: RBC Capital Markets analysts say the outlook for Marks & Spencer food business is tough.
• Shares -19.1% from 2018 highs; now trading at 2018 lows; -17% year-to-date
• In the last 3 weeks, the shares have fallen over 13.5%.
• Will this negative momentum continue?
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Marks & Spencer – An Example

Let’s say the trend appeals to you, you think it’s likely to continue. You decide to sell short exposure to £10,000 worth of Marks & Spencer using a CFD, at the current price of 261p. To do this, you need £2,000.

Let’s assume the Marks & Spencer trend continues to September 2008 lows of 192p (-26.4%). Your profit would be £2640, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 8% from the current price. Marks & Spencer rises 8% and hits your stop-loss. Your loss would be £800.

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