Will Domino’s continue falling, or will it rise again back to recent 272p recent highs?

• Domino’s shares have fallen over 7% today to trade 239p (at time of writing).
• Shares falling after franchise’s CEO warned that individual shops are now demanding a bigger share of profits (Source: The Times)
• Shares -34% from 2018 highs; now trading at 2018 lows; -30.9% year-to-date.
• Recent share price range: late Nov highs 272p; now trading at recent lows.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Domino’s – An Example

Let’s say you feel that the stock is a bargain and you think it could bounce back to recent highs of 272p. You decide to buy exposure to £10,000 worth of Domino’s using a CFD, at the current price of 239p. To do this, you need £2,000.

Let’s assume Domino’s recovers back to 272p (+13.8%). Your profit would be £1380, 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. Domino’s 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.