Will FirstGroup break lower, or will it rise to 84.5p again?

• The FirstGroup trading range has developed since 10 December.
• Shares bounced from support zone 6 times since since March .
• Now trading 79.5p (at time of writing).
• Will the pattern repeat itself, testing previous highs?
• Shares -33.4% from 2018 highs; +4.7% from 2018 lows; -28.0% year-to-date
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading FirstGroup – An Example

Let’s say you like the FirstGroup  range, you think it’s heading back towards 84.5p again. You decide to buy exposure to £10,000 worth of FirstGroup using a CFD, at the current price of 79.5p. To do this, you need £2,000.

Let’s assume FirstGroup rises back to 84.5p (+6.3%). Your profit would be £630, 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. FirstGroup 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.