Will Ferguson continue falling, or will it rise again back to 5363p this week’s highs?

• Ferguson fallen close to 6% this week, hints of a rebound today (+0.1%).
• 23 Jan: US-focused building materials supplier falling after downbeat US housing data.
• Now trades 5066p (at time of writing).
• Shares -5.6% from 2019 highs; +4.2% from 2019 lows; +1% year-to-date.
• Can the stock recover to recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Ferguson – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards this week’s high of 5363p. You decide to buy exposure to £10,000 worth of Ferguson  using a CFD, at the current price of 5066p. To do this, you need £2,000.

Let’s assume Ferguson  recovers back to 5363p this week’s highs (+5.8%). Your profit would be £580, 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. Ferguson  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.