Will Persimmon break support, or will it rise again to 2040p (+4.5%)

• 1932-2040p sideways range; Now 1952p (at time of writing)
• Will the pattern repeat itself, rising back to 2040p (+4.5%)?
• Shares at -21.6% from 2019 highs; +3.1% from 2019 lows; +1.0% year-to-date.
• 1 May: Persimmon right to prioritise quality over sales says Hargreaves Lansdown
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
  

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Trading Persimmon – An Example

Let’s say you like the Persimmon support, you think it’s heading back up to 2040p. You decide to buy exposure to £10,000 worth of Persimmon using a CFD, at the current price of 1952p. To do this, you need £2,000.

Let’s assume Persimmon rises back to 2040p (+4.5%). Your profit would be £450, from your initial investment of £2000.

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.