Will Merlin Entertainments turn, or will it continue to rise to highs of 407p?

• Shares +16% in 4 days; Now trading 381p (at the time of writing).
• Will the positive momentum continue towards highs of 407p?
• Shares -0.2% from 2019 highs; +22% from 2019 lows; +19.9% year-to-date.
• 23 May: Merlin backs strategy after activist calls for sale
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Merlin Entertainments – 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 Merlin Entertainments using a CFD, at the current price of 381p. To do this, you need £2,000.

Let’s assume the Merlin Entertainments trend continues to highs of 407p (+6.8%). Your profit would be £680, 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. Merlin Entertainments 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.