Will Victrex continue falling, or will it rise again back to 2430p last week’s highs?

• Victrex shares -10% from last week’s highs, -4.7% today after results.
• Chemicals company warned of a much weaker H1 after disappointing Q1 results.
• Shares already bounced +3% from today’s lows.
• Now trades 2228p (at time of writing).
• Shares -9.2% from 2019 highs; +3% from 2019 lows; -2.3% year-to-date.
• Can the stock recover to recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Victrex – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards recent high of 2430p. You decide to buy exposure to £10,000 worth of Victrex using a CFD, at the current price of 2228p. To do this, you need £2,000.

Let’s assume Victrex recovers back to 2430p last week’s highs (+9%). Your profit would be £900, 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. Victrex 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.