Will Barratt Developments continue falling, or will it rise again back to recent 555p highs?

• Barratt Developments shares have fallen close to 10% in the past 2 days to trade 493p (at time of writing).
• Shares -24% from 2018 highs; +5% from 2018 lows; -23.8% year-to-date.
• Uncertainty over the Brexit agreement is hurting the Housebuilder sector.
• Recent share price range: Nov highs 555.9p; Oct lows 485p.
• Can the stock regain recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News

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Trading Barratt Developments – An Example

Let’s say you feel that the stock is a bargain and you think it could bounce back to recent highs of 555p. You decide to buy exposure to £10,000 worth of Barratt Developments using a CFD, at the current price of 493p. To do this, you need £2000.

Let’s assume Barratt Developments recovers back to 555p (+12.5%). Your profit would be £1250, from your initial investment of £2000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Barratt Developments falls 5% and hits your stop-loss. Your loss would be £500.

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