Will CYBG continue falling, or will it rise again back to 200p this week’s highs?

• CYBG shares -8.2% from this week’s highs; -5.5% today.
• Bounced +1% from today’s worst levels.
• 22 Feb: Challenger bank failed to secure funding under RBS switching scheme.
• Now trades 185.8p (at time of writing).
• Shares -4.3% from 2019 highs; +14.6% from 2019 lows; +2.6% year-to-date.
• Can the stock recover to recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading CYBG – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards 200p. You decide to buy exposure to £10,000 worth of CYBG using a CFD, at the current price of 185.8p. To do this, you need £2,000.

Let’s assume CYBG recovers back to this week’s highs of 200p (+7.6%). Your profit would be £760, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price. CYBG falls 4% and hits your stop-loss. Your loss would be £400.

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