Will BAE Systems continue falling, or will it rise again back to recent high of 530p?

• BAE Systems shares -11.5% from Feb highs; -6% today
• Results missed expectations, with weaker cash flow and rising debt.
• Now trades 473p (at time of writing).
• Shares -10.7% from 2019 highs; +0.8% from 2019 lows; +3.5% year-to-date.
• Can the stock recover to recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading BAE Systems – An Example

Let’s say you feel that the stock is a bargain and you think it could bounce back to recent high of 530p. You decide to buy exposure to £10,000 worth of BAE Systems using a CFD, at the current price of 473p. To do this, you need £2,000.

Let’s assume BAE Systems recovers back to recent high of 530p (+12%). Your profit would be £1200, from your initial investment of £2000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. BAE Systems 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.