A trading opportunity for you?

Will Crest Nicholson continue falling, or will it rise again back to 398p August highs?

• Crest Nicholson shares have fallen close to 14% in 2 weeks to trade 300p (at time of writing).
• Shares almost -43% from 2018 highs; +2.3% from 2018 lows; -44.8% year-to-date.
• Company issued (17 Oct) a warning about lower-than-expected pre-tax profit for the full year.
• Challenging market conditions in London and the South of England were blamed for lower than anticipated profit margins.
• Is this fall overcooked?
• Source: Dow Jones, Bloomberg, FT, Company News

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Trading Crest Nicholson – An Example

Let’s say you feel that the stock is a bargain and you think it could bounce back to recent highs of 398p. You decide to buy exposure to £10,000 worth of Crest Nicholson using a CFD, at the current price of 300p. To do this, you need £2,000.

Let’s assume Crest Nicholson recovers back to 398p (+32.6%). Your profit would be £3,260, 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. Crest Nicholson 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.