Will Babcock break support, or will it rise again back to 632p Oct/Nov highs?

• Babcock has a 573p support zone since late October , bouncing twice, most recently today.
• Now trading 588p (at time of writing).
• Shares -33.1% from 2018 highs; +1.6% from 2018 lows; -16.7% year-to-date.
• Will the pattern repeat itself, with the shares bouncing off support again?
• 19 Sept: Babcock’s Avincis ‘may attract buyers’, says Jefferies
• 19 Sept: Babcock Backs FY expectations
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading Babcock – An Example

Let’s say you like the Babcock chart and you think the price is heading back towards 633p again. You decide to buy exposure to £10,000 worth of Babcock using a CFD, at the current price of 587p.  To do this, you need £2,000.

Let’s assume Babcock rises back to 633p (+7.8%). Your profit would be £780, 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. Babcock 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.