Will Royal Mail continue falling, or will it rise again back to 308p recent highs?

• Royal Mail fallen over 19% from recent highs after results.
• Postal service narrowed profit guidance and projected weaker letter volumes.
• Already bounced +12% from its worst levels.
• Now trades 276p (at time of writing).
• Shares -10.3% from 2019 highs; +12% from 2019 lows; +2.7% year-to-date.
• Can the stock recover to recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

Click to enlarge

Trading Royal Mail – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards recent high of 308p. You decide to buy exposure to £10,000 worth of Royal Mail using a CFD, at the current price of 276p. To do this, you need £2,000.

Let’s assume Royal Mail recovers back to 308p Monday’s highs (+11.5%). Your profit would be £1150, 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.