Will Dixons Carphone continue falling, or will it rise again back to 125p highs (+20%)?

• Shares fell 26% this morning after results; bounced 16% since
• Now trades 104p (at time of writing).
• Can the stock recover to recent highs of 125p (+20%)?
• Shares -32% from 2019 highs; +18% from 2019 lows; -11.6% year-to-date.
• 20 Jun: Dixons hit hard by legacy contracts but can recover says Citi
• 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 could bounce back towards recent high of 125p. You decide to buy exposure to £10,000 worth of Dixons Carphone using a CFD, at the current price of 104p. To do this, you need £2,000.

Let’s assume Dixons Carphone recovers back to 125p highs (+20%). Your profit would be £2000, 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.