Will Admiral continue falling, or will it recover to 2227p recent highs?

• Admiral shares -7% from this week’s highs; -5.5% today after results
• 2018 profit beat market consensus, but underlying growth disappointed.
• Now trades 2072p (at time of writing).
• Shares -7% from 2019 highs; +5.1% from 2019 lows; +1.2% year-to-date.
• Can the stock recover to recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

Click to enlarge

Trading Admiral – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards 2227p. You decide to buy exposure to £10,000 worth of Admiral using a CFD, at the current price of 2072p. To do this, you need £2,000.

Let’s assume Admiral recovers back to 2227p recent highs (+7.4%). Your profit would be £740, 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. Admiral 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.