Will Ferguson turn, or will it continue to rise towards 6600p?

• Breakout above 5478p to trade 5527p (at time of writing).
• Could the breakout see the shares rally back to 6600p?
• Shares -0.5% from 2019 highs; +20.4% from 2019 lows; +10.2% year-to-date
• 2 May: Citi says Fergsuson prospects are positive; valuation “looks attractive”
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Ferguson – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue towards 6600p. You decide to buy exposure to £10,000 worth of Ferguson using a CFD, at the current price of 5527p. To do this, you need £2,000.

Let’s assume the Ferguson trend continues to highs of 6600p (+19%). Your profit would be £1900, 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. Ferguson breaks lower, falling 5% and it hits your stop-loss. Your loss would be £500.

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