Will Kingfisher continue falling, or will it rise again back to 260p recent highs?

• Kingfisher share price -20% over the last month.
• Now trading at 208.5p (at the time of writing).
• Shares are down over -42.6% from 2018 highs, 0.0% from 2018 lows, -38.1% year-to-date.
• Can the shares bounce back towards recent recent highs?
• Retail sector under pressure from weekend Times article about short sellers pouncing on sector weaklings
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Kingfisher – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards 260p. You decide to buy exposure to £10,000 worth of Kingfisher using a CFD, at the current price of 208.5p. To do this, you need £2,000.

Let’s assume Kingfisher recovers back to recent highs of 260p (+24.7%). Your profit would be £2470, 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. Kingfisher 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.