Will Paddy Power Betfair break support, or will it rise again back to 6598p ?

• Horizontal support at 6012p since mid-Jan, with 3 bounces.
• Latest bounce today to trade 6070p (at time of writing).
• Will the pattern repeat? Will the shares bounce to 6598p again?
• Shares -11.8% from 2019 highs; +1.3% from 2019 lows; -5.2% year-to-date.
• 13 Feb: To appeal German and Greek tax  liabilities
• 1 Feb: Buys 51% stake in Adjarabet for £101m
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Paddy Power – An Example

Let’s say you like the Paddy Power chart and you think the price is heading back towards 6598p again. You decide to buy exposure to £10,000 worth of Paddy Power using a CFD, at the current price of 6070p. To do this, you need £2,000.

Let’s assume Paddy Power rises back to highs of 6599p (+8.6%). Your profit would be £860, 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. Paddy Power 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.