Will Ferguson continue falling, or will it recover to 5388p recent highs?

• Ferguson shares -14.8% from Feb highs; -9% today after results
• Plumbing supplies company cut full-year revenue guidance.
• Now trades 4693p (at time of writing).
• Shares -14.4% from 2019 highs; +0.5% from 2019 lows; -6% 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 5388p recent highs. You decide to buy exposure to £10,000 worth of Ferguson using a CFD, at the current price of 4693p. To do this, you need £2,000.

Let’s assume Ferguson recovers back to 5388p recent highs (+14.8%). Your profit would be £1480, 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.