Will Royal Mail continue falling, or will it rise again back to 313p recent highs?

• Royal Mail shares have fallen over 16% in the past 3 weeks. Down another 3% today.
• Currently trading at 278p (at time of writing).
• Shares down after FedEx slashed its FY revenue outlook.
• Shares -54.6% from 2018 highs; currently trades close to 2018 lows; -38.3% year-to-date.
• Can the stock recover to November highs?
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Royal Mail – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards recent highs of 313p. You decide to buy exposure to £10,000 worth of Royal Mail using a CFD, at the current price of 278p. To do this, you need £2,000.

Let’s assume Royal Mail recovers back to 313p (+12.5%). Your profit would be £1250, 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. Royal Mail 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.