Will IG Group continue falling, or will it rise again back to 649p last week’s highs?

• IG Group shares -13% from last week’s highs; -5.2% today.
• Profits warning from sector peer Plus500 dragging the shares lower.
• Now trades 577p (at time of writing).
• Shares -11.6% from 2019 highs; +2.1% from 2019 lows; +2.2% year-to-date.
• Can the stock recover to recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading IG Group – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards 649p last week’s highs. You decide to buy exposure to £10,000 worth of IG Group using a CFD, at the current price of 577p. To do this, you need £2,000.

Let’s assume IG Group recovers back to 649p last week’s highs (+12.4%). Your profit would be £1240, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 6% from the current price. IG Group falls 6% and hits your stop-loss. Your loss would be £600.

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