Will Aston Martin continue falling, or will it recover yesterday’s highs of 1374p?

• Aston Martin shares -13% today after results.
• Carmaker swung to 2018 pre-tax loss due to £136m IPO costs.
• Now trades 1194p (at time of writing).
• Shares -13.1% from 2019 highs; +7.6% from 2019 lows; -2.6% year-to-date.
• Can the stock recover to recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

Click to enlarge

Trading Aston Martin – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards 1374p. You decide to buy exposure to £10,000 worth of Aston Martin using a CFD, at the current price of 1194p. To do this, you need £2,000.

Let’s assume Aston Martin recovers back to recent highs of 1374p (+15%). Your profit would be £1500, 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. Aston Martin 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.