Capita
A trading opportunity for you?
Will Capita break support, or will it rise again back to 173p July highs?
- Capita has bounced off May support zone around 119p
- Bounced 8 times, most recently this Monday.
- Now trading 127p (at time of writing).
- Bounce from support level is reinforced by news (17 Oct) that Capita has extended a £300m contract with Europe’s largest telecoms provider for another 4 years.
- Shares -49.7% from 2018 highs; +68.8% from 2018 lows; -48% year-to-date.
- Source: Bloomberg, FT, Reuters, DJ Newswires
Trading Capita – An Example
Let’s say you like the Capita range, you think it’s heading back towards 173p again. You decide to buy exposure to £10,000 worth of Capita using a CFD, at the current price of 119p. To do this, you need £2,000.
Let’s assume Capita rises back to 173p (+45.3%). Your profit would be £4,530, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 10% from the current price. Capita falls 10% and hits your stop-loss. Your loss would be £1,000.
This is provided for information purposes only. It should not be taken as a recommendation.