Croda
A trading opportunity for you?
Will Croda break support, or will it rise again back to 5,328p October highs?
- Croda has bounced off March support zone around 4,413p
- Bounced 5 times, most recently this Monday.
- Now trading 4,685p (at time of writing).
- Recent H1 results were promising, with pre-tax profit rising 1.7% YoY.
- Headline revenue fell 0.6% in line with market expectations.
- The chemical company also increased interim dividend to 38p per share (from 35p)
- Shares -13% from 2018 highs; +10% from 2018 lows; +5.8% year-to-date.
- Source: Bloomberg, FT, Reuters, DJ Newswires
Trading Croda – An Example
Let’s say you like the Croda range, you think it’s heading back towards 5,328p again. You decide to buy exposure to £10,000 worth of Croda using a CFD, at the current price of 4,685p. To do this, you need £2,000.
Let’s assume Croda rises back to 5,328p (+13.7%). Your profit would be £1,370, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 7% from the current price. Croda falls 7% and hits your stop-loss. Your loss would be £700.
This is provided for information purposes only. It should not be taken as a recommendation.