Will Reckitt Benckiser continue falling, or will it rise again back to 6039p this week’s highs?

• Reckitt Benckiser fallen close to 7% this week, -2.5% today.
• Jefferies downgraded the shares to Underperform, with a 5000p target.
• Now trades 5634p (at time of writing).
• Shares -7.8% from 2019 highs; currently trades near 2019 lows; -6.3% year-to-date.
• Can the stock recover to recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Reckitt Benckiser – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards recent high of 6039p. You decide to buy exposure to £10,000 worth of Reckitt Benckiser using a CFD, at the current price of 5634p. To do this, you need £2,000.

Let’s assume Reckitt Benckiser recovers back to 6039p this week’s highs (+7.1%). Your profit would be £710, 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. Reckitt Benckiser 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.