Will Aggreko break support, or will it rise again to 861p?

• 822p support since mid-April; 3 bounces to trade 834p (at time of writing).
• Will the pattern repeat, the shares climbing back towards 861p?
• Shares -3.9% from 2019 highs; +20.3% from 2019 lows; -13.9% year-to-date.
• 6 Mar: Results in-line, confident can meet mid-teens ROCE target in 2020
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Aggreko – An Example

Let’s say you like the Aggreko chart and you think the price is heading back towards 861p again. You decide to buy exposure to £10,000 worth of Aggreko using a CFD, at the current price of 834p. To do this, you need £2,000.

Let’s assume Aggreko rises back to 861p Apr highs (+3.2%). Your profit would be £320, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price. Aggreko falls 2% and hits your stop-loss. Your loss would be £200.

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