Will Capita continue falling, or will it recover to 130p highs?

• Shares -28% from April highs; Bounce off 101p support.
• Now trading 103p (at time of writing)
• Will the pattern repeat itself, rising back to recent highs of 130p (+26%)
• Shares at -21% from 2019 highs; +1.4% from 2019 lows; -8.2% year-to-date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Capita – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards 130p . You decide to buy exposure to £10,000 worth of Capita using a CFD, at the current price of 103p. To do this, you need £2,000.

Let’s assume Capita recovers back to 130p highs (+26%). Your profit would be £2600, 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.