Will Merlin break resistance, or will it fall back to 307p?

• Falling resistance since November
• Fallen from resistance 3 times. Now 336p (at time of writing)
• Will the pattern repeat itself, falling back to 307p?
• Shares -20.1% from 2018 highs; +9.0% from 2018 lows; +5.8% year-to-date
• 10 Jan: UBS says immediate challenges outweigh potential, cuts to Sell
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Merlin Entertainments– An Example

Let’s say you like the Merlin range, you think it’s heading back down to 307p again. You decide to sell exposure to £10,000 worth of Merlin using a CFD, at the current price of 336p. To do this, you need £2,000.

Let’s assume Merlin falls back to 307p (-8.6%). Your profit would be £860, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Merlin rises 3% and hits your stop-loss. Your loss would be £300.

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