Will Dixons Carphone continue falling, or will it rise again back to 159p Friday highs?

• Dixons Carphone shares have fallen as low as 17% today after results.
• Latest report disappointed,  retailed swung to £440m pre-tax loss (from £54m profit)
• Company also rebased its dividend rebased (-35.7%).
• Shares almost -42.4% from 2018 highs; +9% from 2018 lows; -31.6% year-to-date.
• Already bounced close to 9% from the lows, now trading at 136p (at time of writing).
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Dixons Carphone – An Example

Let’s say you feel that the stock is a bargain and you think it could bounce back to Friday’s high of 159p. You decide to buy exposure to £10,000 worth of Dixons Carphone using a CFD, at the current price of 136p. To do this, you need £2,000.

Let’s assume Dixons Carphone recovers back to 159p (+16.9%). Your profit would be £1690, 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. Dixons Carphone falls 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.