JD Sports Fashion
A trading opportunity for you?
Will JD Sports Fashion continue falling, or will it rise again back to 472p October highs?
- JD Sports Fashion shares have fallen over 11% in the week to trade 392p (at time of writing).
- Shares almost -22.4% from 2018 highs; +27.5% from 2018 lows; +16.75% year-to-date.
- While latest H1 results were strong, market expected even better revenue growth.
- Poor weather in Q2 worsened shop footfall in JD Sports Fashion stores, pulling results below expectations.
- Latest share price fall due to smaller competitor Footasylum (started by JD Sports Fashion founders) scaling back the number of store openings due to challenging trading environment in UK high street.
- Is the latest fall an overreaction?
- Source: Dow Jones, Bloomberg, FT, Company News
Trading JD Sports Fashion – An Example
Let’s say you feel that the stock is a bargain and you think it could bounce back to recent highs of 472p. You decide to buy exposure to £10,000 worth of JD Sports Fashion using a CFD, at the current price of 392p. To do this, you need £2,000.
Let’s assume JD Sports Fashion recovers back to 472p (+20%). Your profit would be £2,000, 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. JD Sports Fashion 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.