Is this trend a good trading opportunity?

Will William Hill turn, or will it continue to fall to 181p December 2011 lows?

• The chart shows the William Hill price action over the past month.
• Shares in a month-long downtrend from 266p September highs; now at 202p.
• Shares of gambling companies like William Hill hit by UK government plans to hike the remote gaming duty from 15% to 25%.
• This comes on the of regulatory changes earlier this year that slashed highest-permitted FOBT stake from £100 to £2.
• Both actions set to hit gambling companies’ revenue streams.
• Shares -40.9% from 2018 highs; now trading at 2018 lows; -37.1% year-to-date.
• In the past 5 weeks, the shares have fallen over 23.7%. Will this momentum continue?

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Trading William Hill – 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 William Hill using a CFD, at the current price of 202p. To do this, you need £2,000.

Let’s assume William Hill trend continues to 181p December 2011 lows (-10.4%). Your profit would be £1040, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price. William Hill rises 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.