Will Ferguson break support, or will it rise again back to 5200p?

• The Ferguson range has developed since mid-November
• Bounced off 4710p support zone 3 times, most recently this week.
• Now trading 4826p (at time of writing)
• Will the pattern repeat itself, testing recent 5200p highs?
• Shares -27.6% from 2018 highs; +1.9% from 2018 lows; -9.5% year-to-date.
• 4 Dec: Davy says Ferguson’s looks more interesting after Q1 update; Canaccord says US Q1 augurs well
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Ferguson – An Example

Let’s say you like the Ferguson range, you think it’s heading back towards 5200p again. You decide to buy exposure to £10,000 worth of Ferguson using a CFD, at the current price of 4826p. To do this, you need £2,000.

Let’s assume Ferguson rises back to 5200p (+7.7%). Your profit would be £770, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Ferguson falls 3% and hits your stop-loss. Your loss would be £300.

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