Will GVC continue falling, or will it recover to 726p recent highs?

• GVC shares -20% from this week’s highs; -14% today.
• Shares fall as CEO and Chairman sold close to £20m of stock.
• Both pledged not to sell more “while we continue at GVC”.
• Now trades 593p (at time of writing).
• Shares -22.4% from 2019 highs; +1.8% from 2019 lows; +12.7% year-to-date.
• Can the stock recover to recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading GVC – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards 726p. You decide to buy exposure to £10,000 worth of GVC using a CFD, at the current price of 593p. To do this, you need £2,000.

Let’s assume GVC recovers back to 726p recent highs (+22.4%). Your profit would be £2240, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. GVC falls 5% and hits your stop-loss. Your loss would be £500.

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