Capita
Is this trend a good trading opportunity?
Will Capita turn, or will it continue to rise towards 129p?
- Shares +6.5% from lows; Now trading 111p (at the time of writing).
- Will the positive momentum continue towards 129p?
- Shares -15.1% from 2019 highs; +6.7% from 2019 lows; -1.2% year-to-date.
- 14 Mar: Capita improving, but rivals not standing still says Shore Capital
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
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Trading Capita – An Example
Let’s say the trend appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of Capita using a CFD, at the current price of 111p. To do this, you need £2,000.
Let’s assume the Capita trend continues to 129p (+16%). Your profit would be £1600, 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. Capita 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.