Will Elementis continue falling, or will it rise again back to 181p recent highs?

• Elementis shares have fallen as low as -10% today.
• Shares down after brokers at HSBC downgraded the chemical company.
• Rating was lowered from Buy to Hold and the target price lowered to 200p.
• Shares almost -38.9% from 2018 highs; +6.3% from 2018 lows; -37.1% year-to-date.
• Already bounced 2.5% from the lows, now trading at 166.3p (at time of writing).
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Elementis – An Example

Let’s say you feel that the stock is a bargain and you think it could bounce back to recent highs of 181p. You decide to buy exposure to £10,000 worth of Elementis using a CFD, at the current price of 166.3p. To do this, you need £2,000.

Let’s assume Elementis recovers back to 181p (+8.8%). Your profit would be £880, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Elementis 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.