Will Royal Mail continue falling, or will it recover to 238p highs?

• Shares -26% from April highs;  4 touches off rising support.
• Now trading 200p (at time of writing)
• Will the pattern repeat itself, rising back to recent levels of 238p (+19%)
• Shares at -35% from 2019 highs; +4.3% from 2019 lows; -26.4% year-to-date.
• 10 Jun: Royal Mail too cheap to ignore, says Goldman Sachs
• Source: Bloomberg, FT, Reuters, DJ Newswires, 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 238p . You decide to buy exposure to £10,000 worth of Royal Mail using a CFD, at the current price of 200p. To do this, you need £2,000.

Let’s assume Royal Mail recovers back to 238p highs (+19%). Your profit would be £1900, 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.