Will Elecotrocomponents break support or will it rise back to 690p (+8%)?

• Rising range; bounce off support; Now 636p (at time of writing)
• Will the pattern repeat itself, the shares rising back to 690p (+8%)?
• Shares -4% from 2019 highs; +32.8% from 2019 lows; +25.3% year-to-date.
• 14 Jun: Company can get operating margins back to mid-teens says Peel Hunt
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Elecotrocomponents – An Example

Let’s say you like the range, you think it’s heading back towards 690p again. You decide to buy exposure to £10,000 worth of Elecotrocomponents using a CFD, at the current price of 636p. To do this, you need £2,000.

Let’s assume Elecotrocomponents recovers to 690p (+8%). Your profit would be £800, 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. Elecotrocomponents falls 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.