Will Provident Financial turn, or will it continue to rise to Jan highs around 662p?

• Shares +26.5% in less than one week.
• Now trading 601p (at the time of writing).
• Will the positive momentum continue towards January highs around 662p?
• Shares -11.4% from 2019 highs; +22.3% from 2019 lows; +4.7% year-to-date.
• 22 Feb: Owner of Vanquis Bank received takeover offer from smaller rival Non-Standard Finance.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Provident Financial – 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 Provident Financial using a CFD, at the current price of 601p. To do this, you need £2,000.

Let’s assume the Provident Financial trend continues to January highs around 662p (+10.1%). Your profit would be £1010, 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. Provident Financial 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.