Will Capita continue falling, or will it rise again back to yesterday’s high of 118.4p?

• Capita shares down over 7% from yesterday’s highs.
• Shares falling after the National Audit Office report that Capita missed its target to recruit new British Army soldiers by an average of 30% every year since 2012.
• Troubles of peer outsourcing company Interserve also weighing on shares.
• Shares -56.3% from 2018 highs; +46.7% from 2018 lows; -55.2% year-to-date.
• Can the stock recover to yesterday’s highs?
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Capita – An Example

Let’s say you feel that the stock is a bargain and you think it could bounce back to recent highs of 118.4p. You decide to buy exposure to £10,000 worth of Capita using a CFD, at the current price of 109.9p. To do this, you need £2,000.

Let’s assume Capita recovers back to 118.4p (+7.7%). Your profit would be £770, from your initial investment of £2000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Capita falls 3% and hits your stop-loss. Your loss would be £300.

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