Will Renishaw continue falling, or will it recover to 4243p recent highs?

• Renishaw shares -11.7% today after a profits warnings.
• Shares bounced +2.7% from today’s worst levels.
• Now trades 3676p (at time of writing).
• Shares -22.6% from 2019 highs; +2.4% from 2019 lows; -13.75% year-to-date.
• Can the stock recover to recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Renishaw – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards 4243p recent highs. You decide to buy exposure to £10,000 worth of Renishaw using a CFD, at the current price of 3676p. To do this, you need £2,000.

Let’s assume Renishaw recovers back to 4243p recent highs (+15.4%). Your profit would be £1440, 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. Renishaw 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.