Will Kingfisher continue falling, or will it rise again back to 230p Friday’s highs?

• Kingfisher fallen over -5% from Friday’s highs, as low as 217p today.
• RBC downgraded the DIY retailer to Underperform (200p target).
• Now trades 217p (at time of writing).
• Shares -2.5% from 2019 highs; +11.9% from 2019 lows; +5% year-to-date.
• Can the stock recover to recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News, 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 230p. You decide to buy exposure to £10,000 worth of Kingfisher using a CFD, at the current price of 217p. To do this, you need £2,000.

Let’s assume Kingfisher recovers back to recent highs of 230p Friday’s highs (+6%). Your profit would be £600, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Kingfisher falls 3% and hits your stop-loss. Your loss would be £300.

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