Will Royal Mail continue falling, or will it recover to 271p recent highs?

• Royal Mail shares -14% from last week’s highs.
• Already bounced +2.7% from this week’s lows.
• 22 Mar: Keith Williams is appointed new Chairman of Royal Mail
• Now trades 238p (at time of writing).
• Shares -22.5% from 2019 highs; +2.6% from 2019 lows; -12.2% year-to-date.
• Can the stock recover to recent 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 271p . You decide to buy exposure to £10,000 worth of Royal Mail using a CFD, at the current price of 238p. To do this, you need £2,000.

Let’s assume Royal Mail recovers back to 271p recent highs (+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. 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.