Will John Wood turn, or will it continue beyond 514p lows?

• The chart shows the John Wood price action since October.
• Shares -20% in a 2-week downtrend from 646p Dec highs; now at 518p, testing 2018/7yr lows.
• Will this momentum continue, taking the shares back towards 2011 lows?
• Shares -35.5% from 2018 highs; +0.4% from 2018 lows; -20.2% year-to date
• 18 Dec: Wood Group wins 10yr $66m Sellafield control system framework
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading John Wood – An Example

Let’s say the trend appeals to you, you think it’s likely to continue. You decide to sell exposure to £10,000 worth of John Wood using a CFD, at the current price of 518p. To do this, you need £2,000.

Let’s assume John Wood trend continues below to 2011 lows of 460p (-11.1%). Your profit would be £1110, 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. John Wood rises 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.