Will Dairy Crest break lower, or will it rise to 460p again?

• The Dairy Crest falling range has developed since late May.
• Shares bounced back from support 3 times, most recently on Friday.
• Now trading 421p (at time of writing).
• Will the pattern repeat itself, testing previous lows?
• Shares -30.4% from 2018 highs; now trades at 2018 lows; -26.8% year-to-date
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Dairy Crest – An Example

Let’s say you like the Dairy Crest range, you think it’s heading back towards 460p again. You decide to buy exposure to £10,000 worth of Dairy Crest using a CFD, at the current price of 421p. To do this, you need £2,000.

Let’s assume Dairy Crest rises back to 460p (+9.2%). Your profit would be £920, 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. Dairy Crest 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.