Will Halfords continue falling, or will it rise again back to 278p yesterday’s close?

• Halfords share price rebounding over +14% after falling as low as -28% at today’s market open.
• The retailer issued a profits warning, cutting 2019 profit guidance to £58-62m.
• Now expects weak consumer confidence, but still confident in cash flow to cover dividends.
• Now trading at 226p (at the time of writing).
• Shares -19.3% from 2019 highs, +14% from 2019 lows, -11.5% year-to-date.
• Can the shares regain recent highs?
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Halfords – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards 278p. You decide to buy exposure to £10,000 worth of Halfords using a CFD, at the current price of 226p. To do this, you need £2,000.

Let’s assume Halfords recovers back to 278p last week’s highs (+23%). Your profit would be £2300, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 8% from the current price. Halfords falls 8% and hits your stop-loss. Your loss would be £800.

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