Will Persimmon continue falling, or will it rise again back to 2364p last week’s highs?

• Persimmon shares as low as -11.8% since April highs.
• 25 Feb: The Times reported the housebuilder could lose access to Help to Buy scheme
• Now trades 2092p (at time of writing).
• Shares -15.8% from 2019 highs; +10.6% from 2019 lows; +8.5% year-to-date.
• Can the stock recover to recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Persimmon – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards 2364p. You decide to buy exposure to £10,000 worth of Persimmon using a CFD, at the current price of 2092p. To do this, you need £2,000.

Let’s assume Persimmon recovers back to last week’s highs of 2490p (+13%). Your profit would be £1300, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price. Persimmon falls 4% and hits your stop-loss. Your loss would be £400.

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