Will Pearson break support, or will it rise again back to 1029p Jan highs?

• Pearson has a support zone at 912p; horizontal and rising since November.
• Latest bounce today to trade 920p (at time of writing).
• Will the pattern repeat itself? Will the shares bounce off support again?
• Shares -5.2% from 2018 highs; +50.0% from 2018 lows; -1.9% year-to-date.
• 16 Jan: Pearson narrows 2018 profit guidance
• 16 Jan: Pearson expects US revenues flat to -5% as pressures continue in 2019
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Pearson – An Example

Let’s say you like the Pearson chart and you think the price is heading back towards 1029p again. You decide to buy exposure to £10,000 worth of Pearson  using a CFD, at the current price of 920p. To do this, you need £2,000.

Let’s assume Pearson rises back to 1029p (+11.8%). Your profit would be £1180, 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. Pearson 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.