Will Aggreko break support, or will it rise again to 773p?

• Shallow rising support since mid-December.
• 3 bounces to trade 719p (at time of writing).
• Will the pattern repeat, the shares climbing back towards 773p?
• Shares -19.5% from 2018 highs; +12.7% from 2018 lows; -1.9% year-to-date.
• 14 Dec: Wins $200m contract to supply temporary electricity for Tokyo Olympics
• 14 Dec: Aggreko confident to achieve mid-teens ROCE target in 2020
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Aggreko – An Example

Let’s say you like the Aggreko chart and you think the price is heading back towards 773p again. You decide to buy exposure to £10,000 worth of Aggreko using a CFD, at the current price of 719p. To do this, you need £2,000.

Let’s assume Aggreko rises back to 773p Jan highs (+7.5%). Your profit would be £750, 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. Aggreko 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.