Will John Wood break lower, or will it rise back again to 799p?

• John Wood has developed a range since August.
• Bounced off support zone 3 times, most recently today.
• Now trading 700p (at time of writing).
• Will the pattern repeat itself, testing previous highs?
• Shares -15.0% from 2018 highs; +32.2% from 2018 lows; +7.5% year-to-date.
• John Wood is an oil & gas services company
• 18 Oct: John Wood wins contract with IRPC in Thailand
• 9 Oct: John Wood secures $250m in US midstream sector contracts
• 8 Oct: John Wood secures multi-million dollar contract at Oman refinery
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading John Wood – An Example

Let’s say you like the John Wood range, you think it’s heading back towards 799p again. You decide to buy exposure to £10,000 worth of John Wood using a CFD, at the current price of 700p. To do this, you need £2,000.

Let’s assume John Wood rises back to 799p (+14.1%). Your profit would be £1410, 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. John Wood 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.