Will FirstGroup break support, or will it rise again back to recent 102.85p highs?

• FirstGroup has rising support since March, with 3 bounces, the most recently at 80.3p,
• Now trading 82.95p at time of writing).
• Shares -30.8% from 2018 highs; +8.7% from 2018 lows; -25.0% year-to-date
• Will the pattern repeat itself, with the shares bouncing off support again?
• FirstGroup is a Bus and Rail passenger transport company
• 7 Sept: FirstGroup attracts private-equity interest suggests Liberum, citing Bloomberg
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading FirstGroup – An Example

Let’s say you like the FirstGroup chart and you think the price is heading back towards 102.85p again. You decide to buy exposure to £10,000 worth of FirstGroup using a CFD, at the current price of 82.95p.  To do this, you need £2,000.

Let’s assume FirstGroup rises back to 102.85p (+24%). Your profit would be £2400, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. FirstGroup falls 5% and hits your stop-loss. Your loss would be £500.

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