Will WH Smith break higher, or will it fall back to 1700p lows again?

• WH Smith is in a falling channel since this time last year
• Bounced back from falling highs trendline 3 times, most recently this month.
• Now trading 1907p (at time of writing)
• Will the pattern repeat itself, testing previous lows?
• Shares -17.6% from 2018 highs; +13.8% from 2018 lows; -18.7% year-to-date
• 30 Oct: Shares rally after WH Smith buys US Travel Retailer InMotion for $198m
• Source: Dow Jones, Bloomberg, FT, Company News

Click to enlarge

Trading WH Smith – An Example

Let’s say you like the range, you think it’s heading back towards 1700p again. You decide to sell exposure to £10,000 worth of WH Smith using a CFD, at the current price of 1907p. To do this, you need £2,000.

Let’s assume WH Smith falls back to 1700p (-10%). Your profit would be £1000, 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. WH Smith 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.