Will Smith & Nephew continue falling, or will it rise again back to recent 1469p highs?

• Smith & Nephew shares have fallen as low at -5% from Monday’s highs.
• Already bounced over 2% from today’s lows.
• Currently trading 1424p (at time of writing).
• Shares currently trading -3% year-to-date.
• Smith & Nephew manufactures medical equipment.
• 2 Jan: Stock falling after JP Morgan downgraded it to Neutral, with a 1477p target.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Smith & Nephew – An Example

Let’s say you feel that the stock is a bargain and you think it could bounce back to recent highs of 1469p. You decide to buy exposure to £10,000 worth of Smith & Nephew using a CFD, at the current price of 1424p. To do this, you need £2,000.

Let’s assume Smith & Nephew recovers back to 1469p (+3.1%). Your profit would be £310, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price. Smith & Nephew falls 2% and hits your stop-loss. Your loss would be £200.

This is provided for information purposes only. It should not be taken as a recommendation.