Will Stagecoach break lower, or will it rise back to 184p highs again?

• Stagecoach shares are trading in 127-184p range since December 2017.
• Bounced from rising support 4 times, most recently last week.
• Now trading 130p (at time of writing)
• Will the pattern repeat itself, testing previous lows?
• Shares -28.3% from 2018 highs; +6.6% from 2018 lows; -21.3% year-to-date
• 21 Dec: Stagecoach JV with Virgin Rail granted 1 yr extension in West Coast franchise
• 20 Dec: Stagecoach to sell North America unit for $271.4m
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Stagecoach – An Example

Let’s say you like the range, you think it’s heading back towards 184p again. You decide to buy exposure to £10,000 worth of Stagecoach using a CFD, at the current price of 130p. To do this, you need £2,000.

Let’s assume Stagecoach rises back to 184p (+41.5%). Your profit would be £4150, 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. Stagecoach 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.