Will Domino’s Pizza continue falling, or will it rise again back to 283p recent highs?

• Domino’s Pizza fallen over 13% from Monday’s highs after results.
• Delivery chain highlighted business integration challenges in Norway.
• Full-year profit now expected at lower end of market consensus.
• Already bounced +2% from its worst levels.
• Now trades 250p (at time of writing).
• Shares -12.5% from 2019 highs; +2% from 2019 lows; +7% year-to-date.
• Can the stock recover to recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Domino’s Pizza – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards Monday’s high of 283p. You decide to buy exposure to £10,000 worth of Domino’s Pizza using a CFD, at the current price of 250p. To do this, you need £2,000.

Let’s assume Domino’s Pizza recovers back to 283p Monday’s highs (+13.2%). Your profit would be £1320, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 6% from the current price. Domino’s Pizza falls 6% and hits your stop-loss. Your loss would be £600.

This is provided for information purposes only. It should not be taken as a recommendation.