Will Barratt Developments continue falling, or will it recover to recent 615p highs?

• Shares down 10% from recent highs; Currently 562p. (at the time of writting)
• Can the stock rally 9% to recent 615p highs
• Shares -10.3% from 2019 highs, +25% from 2019 lows, -21.7% year-to-date.
• 9 May: Upbeat trends to continue says Numis
• 9 May: Jan-May total forward sales +2.4%; Outlook above board’s views
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Barratt Developments – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards 615p. You decide to buy exposure to £10,000 worth of Barratt Developments using a CFD, at the current price of 562p. To do this, you need £2,000.

Let’s assume Barratt Developments recovers back to 615p (+9.4%). Your profit would be £940, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Barratt Developments falls 3% and hits your stop-loss. Your loss would be £300.

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