A range trading opportunity for you?
Will John Wood break lower, or will it rise back again to 785p?
- John Wood has developed a range since early September.
- Bounced off support zone 4 times, most recently this week.
- Now trading 700p (at time of writing).
- Will the pattern repeat itself, testing previous highs?
- Shares -13.7% from 2018 highs; +34.3% from 2018 lows; +7.7% year-to-date.
- John Wood is an oil & gas services company
- 18 Oct: John Wood wins contract with IRPC in Thailand
- 9 Oct: Secures 2 contracts: $250m in US midstream sector + multi-million Oman refinery
- Source: Bloomberg, FT, Reuters, DJ Newswires
Trading John Wood – An Example
Let’s say you like the John Wood range, you think it’s heading back towards 785p again. You decide to buy exposure to £10,000 worth of John Wood using a CFD, at the current price of 700p. To do this, you need £2,000.
Let’s assume John Wood rises back to 785p (+12.1%). Your profit would be £1210, 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. John Wood 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.