WPP
A trading opportunity for you?
Will WPP continue falling, or will it rise again back to recent 1323p August highs?
- WPP shares have fallen over 22% in the past 3 weeks to trade 894p (at time of writing).
- Shares -28.4% from 2018 highs; +4% from 2018 lows; -33% year-to-date.
- Latest Q3 sales missed market expectations and the company cut its full year sales guidance.
- Ad agency also confirmed it is seeking to sell a stake in market-research unit Kantar Group.
- Can the stock regain recent highs?
- Source: Dow Jones, Bloomberg, FT, Company News
Trading WPP – An Example
Let’s say you feel that the stock is a bargain and you think it could bounce back to recent highs of 1323p. You decide to buy exposure to £10,000 worth of WPP using a CFD, at the current price of 894p. To do this, you need £2000.
Let’s assume WPP recovers back to 1323p (+48%). Your profit would be £4800, from your initial investment of £2000.
Conversely, let’s assume you open the above position, and place a stop-loss at 7% from the current price. WPP falls 7% and hits your stop-loss. Your loss would be £700.
This is provided for information purposes only. It should not be taken as a recommendation.