Will BT continue falling, or will it rise again back to 241p last week’s highs?

• BT fallen as low as -6.5% this week after mixed Q3 results.
• Already bounced +2.6% from its lows today.
• Telecom’s revenue beat expectations, but profits missed consensus.
• Now trades 230p (at time of writing).
• Shares -4.9% from 2019 highs; +2.6% from 2019 lows; -3.7% year-to-date.
• Can the stock recover to recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News, 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 last week’s high of 241p. You decide to buy exposure to £10,000 worth of BT using a CFD, at the current price of 230p. To do this, you need £2,000.

Let’s assume BT recovers back to 241p recent highs (+4.7%). Your profit would be £470, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price. BT falls 2% and hits your stop-loss. Your loss would be £200.

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