Will Dairy Crest continue falling, or will it rise again back to recent 484p October highs?

• Dairy Crest shares have fallen 7% from Wednesday’s 484p highs.
• Currently trading close to 2018 lows at 450p (at time of writing).
• Shares -25.8% from 2018 highs; +1.7% from 2018 lows; -22% year-to-date.
• Recent share price range: Oct lows 441p; Oct highs 484p.
• Half-year forecast in mid-September was upbeat thanks to strong demand for cheese and spread brands.
• Can the stock regain recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News

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Trading Dairy Crest – An Example

Let’s say you feel that the stock is a bargain and you think it could bounce back to recent highs of 484p. You decide to buy exposure to £10,000 worth of Dairy Crest using a CFD, at the current price of 450p. To do this, you need £2,000.

Let’s assume Dairy Crest recovers back to 484p (+7.5%). Your profit would be £750, from your initial investment of £2000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Dairy Crest 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.