Will Spirax-Sarco continue falling, or will it rise again back to recent 6865p November highs?

• Spirax-Sarco shares have fallen close to 10% from November highs to trade 6202p (at time of writing).
• Shares -16.5% from 2018 highs; +16% from 2018 lows; +10.8% year-to-date.
• Engineering company’s shares falling after it forecasted a slightly lower level of industrial production growth in 2019.
• Recent share price range: Nov highs 6865p; Oct lows 6050p.
• Can the stock regain recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News

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Trading Spirax-Sarco – An Example

Let’s say you feel that the stock is a bargain and you think it could bounce back to recent highs of 6865p. You decide to buy exposure to £10,000 worth of Spirax-Sarco using a CFD, at the current price of 6202p. To do this, you need £2000.

Let’s assume Spirax-Sarco recovers back to 6865p (+10.7%). Your profit would be £1070, 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. Spirax-Sarco 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.