Will John Wood break support, or will it rise back to 595p?

• 496-595p range since December, bounced off floor
• Now trades 516p (at time of writing)
• Will the pattern repeat itself, testing previous 595p ceiling?
• Shares -14.7% from 2019 highs; +5.5% from 2019 lows; +2.4% year-to-date.
• Oil prices either back to or nearing recent highs
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading John Wood – An Example

Let’s say you like the range, you think it’s heading back towards 595p again. You decide to buy exposure to £10,000 worth of John Wood using a CFD, at the current price of 516p. To do this, you need £2,000.

Let’s assume John Wood rises to 595p (+15.3%). Your profit would be £1530, 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. John Wood 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.