Persimmon
A trading opportunity for you?
Will Persimmon break support, or will it rise again back to 2450p ?
- Support level formed in -September
- Bounced off 2340p zone 4 times this month. Now trading 2349p (at time of writing)
- Will the pattern repeat itself, bouncing up again towards 2450p recent highs?
- Shares -18.8% from 2018 highs; +1.2% from 2018 lows; -14.2% year-to date
- UK housing market proving resilient
- Peel Hunt (21 Aug) said Persimmon shares are undervalued after the U.K. house-builder posted higher first-half profit and set out plans to return surplus capital in the next three years
Trading Persimmon – An Example
Let’s say you like the range, you think it’s heading back towards 2450p again. You decide to buy exposure to £10,000 worth of Persimmon using a CFD, at the current price of 2350p. To do this, you need £2,000.
Let’s assume Persimmon recovers back to 2450p (+4.2%). Your profit would be £425, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss 2% below the current price. Persimmon falls 2% and hits your stop-loss. Your loss would be £200.
This is provided for information purposes only. It should not be taken as a recommendation.