It is often seen that special forces round the world fire MP5s with the retractable stock close. After speaking to a qualified MP5 instructor, it was understood that the theory of this type of target engagement  is called "sense of direction".

During a CQB situation, which often in close range (within 5 to 10 meters), an operator would simply point the weapon at the target and shoot. This is because in such a close range, really this is no reason to aim at the target as long as the operator is already looking at it (you can kill the target by just throwing a hammer at it!). It is up to the operator how to point the weapon at the target. 

There is actually no standard way to do this, as long as you are happy you can point the weapon in whatever way you want to. A simple way to practice this theory is by having a target on a wall. Hold a MP5 with the stock retracted with both hands in the relaxed position. Then adopt the standing ready position with both hands on the weapon pointing at the target. If you have already established your natural aiming position then you should be aiming at the same point every time. Otherwise get practicing!

The sling if adjusted correctly can be used as a support to the weapon but this is also dependent on the users choice.

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