Will Ferrexpo continue falling, or will it rise again back to April highs at 306p?

• Shares down 30% from April highs;
• Shares -20% today after its auditor resigned just days after 2018 results
• Now trades 220p (at time of writing).
• Shares -27.8% from 2019 highs; +23.2% from 2019 lows; +13.6% year-to-date.
• Can the stock recover to recent highs of 306p?
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

Click to enlarge

Trading Ferrexpo – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards recent high of 306p. You decide to buy exposure to £10,000 worth of Ferrexpo using a CFD, at the current price of 220p. To do this, you need £2,000.

Let’s assume Ferrexpo recovers back to 306p recent highs (+39%). Your profit would be £3900, 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. Ferrexpo 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.