Will Persimmon break lower, or will it rise to 1997p again?

• The Persimmon trading range has developed since late November.
• Shares bounced from support zone 3 times, most recently this week.
• Now trading 1889p (at time of writing).
• Will the pattern repeat itself, testing previous highs?
• 6 Dec: Hard Brexit priced in for UK housebuilders says Liberum
• Shares -35.8% from 2018 highs; +2.4% from 2018 lows; -31.6% year-to-date
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Persimmon – An Example

Let’s say you like the Persimmon range, you think it’s heading back towards 1997p again. You decide to buy exposure to £10,000 worth of Persimmon using a CFD, at the current price of 1889p. To do this, you need £2,000.

Let’s assume Persimmon rises back to 1997p (+5.7%). Your profit would be £570, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price. Persimmon falls 2% and hits your stop-loss. Your loss would be £200.

This is provided for information purposes only. It should not be taken as a recommendation.