Will Mondi continue falling, or will it bounce back from here to recent highs at 1820p?

• Mondi fallen 6.6% from Tuesday’s highs at 1820p.
• Shares dropped all across the packaging sector as a reaction to weak prices
• Now trades 1705p (at time of writing).
• Shares -11.8% from 2019 highs; +6.7% from 2019 lows; +4.4% year-to-date.
• Can the stock bounce from here?
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Mondi – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards recent high of 1820p. You decide to buy exposure to £10,000 worth of Mondi using a CFD, at the current price of 1705p. To do this, you need £2,000.

Let’s assume Mondi recovers back to 1820p recent highs (+6.2%). Your profit would be £700, 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. Mondi 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.