Ferguson
A trading opportunity for you?
Will Ferguson break support, or will it rise again back to 6577p ?
- Ferguson has shallow rising support since mid-June.
- Bounced around 5900p 4 times. Now trading at 6025p (at time of writing)
- Will the pattern repeat itself, bouncing up again towards 6577p?
- Shares -9.5% from 2018 highs; +19% from 2018 lows; +13% year-to date
- 2 Oct: Ferguson falls as investors take profit and eye a tough UK market
- 3 Oct: Numis “Ferguson to continue momentum”
- Source: Bloomberg, FT, Reuters, DJ Newswires
Trading Ferguson – An Example
Let’s say you like the range, you think it’s heading back towards 6577p again. You decide to buy exposure to £10,000 worth of Ferguson using a CFD, at the current price of 6025p. To do this, you need £2,000.
Let’s assume Ferguson recovers back to 6577p (+9.2%). Your profit would be £920, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss 3% below the current price. Ferguson 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.