Will Dairy Crest break higher, or will it fall to 425p again?

• The Dairy Crest falling range has developed since late May.
• Shares fallen back from resistance 4 times, most recently today.
• Now trading 464p (at time of writing).
• Will the pattern repeat itself, testing previous lows?
• Shares -23.8% from 2018 highs; +7.0% from 2018 lows; -19.5% year-to-date
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal, CMC Markets

Click to enlarge

Trading Dairy Crest – An Example

Let’s say you like the Dairy Crest range, you think it’s heading back towards 425p again. You decide to sell exposure to £10,000 worth of Dairy Crest using a CFD, at the current price of 464p. To do this, you need £2,000.

Let’s assume Dairy Crest falls back to 425p (-8.4%). Your profit would be £840, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Dairy Crest rises 5% and hits your stop-loss. Your loss would be £500.

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