Will Reckitt Benckiser continue falling, or will it rise again back to recent 7174p October highs?

• Reckitt Benckiser shares have fallen 4.5% today (-10.3% in the past month) to trade 6302p (at time of writing).
• Shares -7.8% from 2018 highs; +25.8% from 2018 lows; -8.9% year-to-date.
• Recent share price range: Oct lows 6278p; Oct highs 7174p.
• Reckitt Benckiser is a manufacturer of household goods and personal healthcare products.
• Temporary disruption at a European infant formula plant led to that segment posting 6% losses in the Q3 2018.
• While the disruption is over, Reckitt Benckiser warned that some after-effects could continue into Q4 and 2019.
• Can the stock regain recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News

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Trading Reckitt Benckiser – An Example

Let’s say you feel that the stock is a bargain and you think it could bounce back to recent highs of 7174p. You decide to buy exposure to £10,000 worth of Reckitt Benckiser using a CFD, at the current price of 6302p. To do this, you need £2,000.

Let’s assume Reckitt Benckiser recovers back to 7174p (+13.8%). Your profit would be £1380, 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. Reckitt Benckiser 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.