Will Computacenter continue falling, or will it rise again back to recent 1366p October highs?

• Computacenter shares have fallen almost 18% today to trade 1032p (at time of writing).
• Shares -23% from 2018 highs; +24.4% from 2018 lows; -10.4% year-to-date.
• Recent share price range: Oct lows 1003p; Oct highs 1366p.
• Latest trading update disappointed, with revenues -3% due to challenging comparison.
• Company expects improved growth in Q4 (before acquisitions) but not to the levels seen in H1.
• Can the stock regain recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News

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Trading Computacenter – An Example

Let’s say you feel that the stock is a bargain and you think it could bounce back to recent highs of 1366p. You decide to buy exposure to £10,000 worth of Computacenter using a CFD, at the current price of 1032p. To do this, you need £2,000.

Let’s assume Computacenter recovers back to 1366p (+32.3%). Your profit would be £3230, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 9% from the current price. Computacenter 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.