Will BT continue falling, or will it rise again back to 231p highs?

• Shares fell as much as 16.6% before bouncing by 2.7% .
• Now trades 197p (at time of writing).
• Shares -18.6% from 2019 highs; +3.6% from 2019 lows; -17% year-to-date.
• Can the stock recover to recent 231p highs?
• 3 Jun: Cresit Suisse upgrades to Outperform (target 280p). Says could boost cash flow, earnings and share price by buying fewer costly TV sports rights following deal with Comcast’s Sky
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading BT – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards highs of 231p. You decide to buy exposure to £10,000 worth of BT using a CFD, at the current price of 197p. To do this, you need £2,000.

Let’s assume BT recovers back to 231p recent highs (+17%). Your profit would be £1700, 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. BT 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.