A trading opportunity for you?
Will John Wood continue falling, or will it rise again back to 551p last week’s highs?
- John Wood shares -10.6% from last week;
- Shares already bounced +1.7% from lows, +0.4% today.
- 28 Jan: Oil services group sold $28m interest in JVs to dispose of non-core assets.
- Now trades 500p (at time of writing).
- Shares -17.7% from 2019 highs; +1.4% from 2019 lows; -0.5% year-to-date.
- Can the stock recover to recent highs?
- Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal
Trading John Wood – An Example
Let’s say you feel that the stock is a bargain and you think could bounce back towards recent high of 551p. You decide to buy exposure to £10,000 worth of John Wood using a CFD, at the current price of 500p. To do this, you need £2,000.
Let’s assume John Wood recovers back to 551p last week’s highs (+10.2%). Your profit would be £1020, 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. John Wood 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.