Will Mondi break lower, or will it rise back to 1857p highs again?

• Mondi shares are trading in a 1692-1857p range since mid-October.
• Bounced off support zone twice, most recently yesterday.
• Now trading 1711p (at time of writing)
• Will the pattern repeat itself, testing previous lows?
• Shares -22.8% from 2018 highs; +2.6% from 2018 lows; -11.3% year-to-date
• 11 Oct: Davy says share price sell-off unjustified
• Source: Dow Jones, Bloomberg, FT, Company News

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Trading Mondi – An Example

Let’s say you like the range, you think it’s heading back towards 1857p again. You decide to buy exposure to £10,000 worth of Mondi using a CFD, at the current price of 1711p. To do this, you need £2,000.

Let’s assume Mondi rise back to 1857p (+8.5%). Your profit would be £850, 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. Mondi falls 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.