A trading opportunity for you?

Will AA continue falling, or will it rise again back to 127p September highs?

• The price has fallen over 7.5% in one week.
• Shares are down over 33% from 2018 highs, but still up over 70% from 2018 lows, 35.7% year-to-date.
• Latest results disappointed investors due to falling profits, though this was in-line with market expectations.
• Company is facing high costs, making slow-but-steady recovery progress uncertain.
• Shares have been as high as 127p in September, and as low as 107p. It is now at 109p.

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Trading AA – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards September high of 127p. You decide to buy exposure to £10,000 worth of AA using a CFD, at the current price of 109p. To do this, you need £2,000.

Let’s assume AA recovers back to 127p (+16.5%). Your profit would be £1,650, 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. AA 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.