Will Smurfit Kappa continue falling, or will it recover to 2352p recent highs?

• Smurfit Kappa shares fell as low as -11.6% from last week’s highs.
• Paper and packaging shares fell after Moody’s downgraded the sector.
• Already bounced +2.1% from this week’s lows.
• Now trades 2123p (at time of writing).
• Shares -13.4% from 2019 highs; +4.8% from 2019 lows; +2.1% year-to-date.
• Can the stock recover to recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Smurfit Kappa  – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards 2352p. You decide to buy exposure to £10,000 worth of Smurfit Kappa using a CFD, at the current price of 2123p. To do this, you need £2,000.

Let’s assume Smurfit Kappa recovers back to 2352p recent highs (+10.7%). Your profit would be £1070, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Smurfit Kappa falls 3% and hits your stop-loss. Your loss would be £300.

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