Will WH Smith break lower, or will it rise back to 2100p highs again?

• WH Smith is trades a ranges since September
• Bounced from 1695p support zone 4 times, most recently this week.
• Now trading 1751p (at time of writing)
• Will the pattern repeat itself, testing previous highs?
• Shares -25.1% from 2018 highs; +4.4% from 2018 lows; -25.7% year-to-date
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading WH Smith – An Example

Let’s say you like the range, you think it’s heading back towards 2100p again. You decide to buy exposure to £10,000 worth of WH Smith using a CFD, at the current price of 1751p. To do this, you need £2,000.

Let’s assume WH Smith rises back to 2100p (-19.9%). Your profit would be £1990, 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.