Will Ashtead continue falling, or will it rise again back to recent 2461p September highs?

• Ashtead shares have fallen over 17.5% in the past month.
• Currently trading at 1900p (at time of writing).
• Shares -20.2% from 2018 highs; +11% from 2018 lows; -4.7% year-to-date.
• Recent share price range: Oct lows 1772p; Sept highs 2461p.
• Shares fallen from recent highs as concerns grow that mid-term elections in the United States could shift the balance of power there.
• Ashtead makes the majority of its sales in the US and has benefited from recent Republican tax cuts.
• Can the stock regain recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News

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Trading Ashtead – An Example

Let’s say you feel that the stock is a bargain and you think it could bounce back to recent highs of 2461p. You decide to buy exposure to £10,000 worth of Ashtead using a CFD, at the current price of 1900p. To do this, you need £2,000.

Let’s assume Ashtead recovers back to 2461p (+29.4%). Your profit would be £2940, from your initial investment of £2000.

Conversely, let’s assume you open the above position, and place a stop-loss at 9% from the current price. Ashtead falls 9% and hits your stop-loss. Your loss would be £900.

This is provided for information purposes only. It should not be taken as a recommendation.