Will Rotork continue falling, or will it recover to last week’s 296p highs?

• Rotork shares -6.5% today after results, shares -7.7% from Friday’s highs.
• Manufacturer of electric actuators projected slower 2019 growth.
• Now trades 277p (at time of writing).
• Shares -6.6% from 2019 highs; +16.6% from 2019 lows; +11.9% year-to-date.
• Can the stock recover to recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Rotork – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards 296p. You decide to buy exposure to £10,000 worth of Rotork using a CFD, at the current price of 277p. To do this, you need £2,000.

Let’s assume Rotork recovers back to last week’s 296p highs (+6.8%). Your profit would be £680, 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. Rotork 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.