Will BT continue falling, or will it rise again back to recent 252p highs?

• BT share price -6.7% since 20 Dec
• Shares went ex-dividend for 1.8% today.
• Now trading at 238p (at the time of writing).
• Shares -12.6% from 2018 highs; +20.9% from 2018 lows, -12.7% year-to-date.
• Can the shares regain recent highs?
• 18 Dec: Remuneration committee will consider broader range of performance factors in setting CEO pay
• 14 Dec: Ofcom launches review of UK broadband pricing
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading BT – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards 252p. You decide to buy exposure to £10,000 worth of BT using a CFD, at the current price of 238p. To do this, you need £2,000.

Let’s assume BT recovers back to this week’s highs of 252p (+5.8%). Your profit would be £580, 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. BT 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.