A trading opportunity for you?
Will Saga continue falling, or will it recover to 126p recent highs?
- Saga shares -10% from this week’s highs; -5% today after a broker downgrade
- Insurer downgraded by JP Morgan to Underweight, 120p target.
- Now trades 115p (at time of writing).
- Shares -8.4% from 2019 highs; +15.4% from 2019 lows; +11.3% year-to-date.
- Can the stock recover to recent highs?
- Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal
Trading Saga – An Example
Let’s say you feel that the stock is a bargain and you think could bounce back towards 126p. You decide to buy exposure to £10,000 worth of Saga using a CFD, at the current price of 115p. To do this, you need £2,000.
Let’s assume Saga recovers back to 126p recent highs (+9.5%). Your profit would be £950, 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. Saga 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.