Will AO World continue falling, or will it rise again back to recent 149p highs?

• AO World shares have fallen close to 20% in the past 2 days to trade 110p (at time of writing).
• Shares -38.8% from 2018 highs; +8.7% from 2018 lows; flat year-to-date.
• Tech retailer said its H1 pre-tax loss widened after it booked higher costs
• Recent share price range: Oct highs 149p; now trading close to recent lows.
• Can the stock regain recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News

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Trading AO World – An Example

Let’s say you feel that the stock is a bargain and you think it could bounce back to recent highs of 149p. You decide to buy exposure to £10,000 worth of AO World using a CFD, at the current price of 110p. To do this, you need £2000.

Let’s assume AO World recovers back to 149p (+35.4%). Your profit would be £3540, from your initial investment of £2000.

Conversely, let’s assume you open the above position, and place a stop-loss at 9% from the current price. AO World falls 9% and hits your stop-loss. Your loss would be £900.

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