Will Ferrexpo continue falling, or will it rise again back to 270p recent highs?

• Ferrexpo fallen close to 11% from Friday’s highs.
• Shares already bounced +2.4% from today’s lows
• Auditor Deloitte discovered “unexplained discrepancies” in bank statements.
• Now trades 247p (at time of writing).
• Shares -8.7% from 2019 highs; +38% from 2019 lows; +26.6% year-to-date.
• Can the stock recover to recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

Click to enlarge

Trading Ferrexpo – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards recent high of 270p. You decide to buy exposure to £10,000 worth of Ferrexpo using a CFD, at the current price of 247p. To do this, you need £2,000.

Let’s assume Ferrexpo recovers back to 270p recent highs (+9.3%). Your profit would be £930, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Ferrexpo falls 5% and hits your stop-loss. Your loss would be £500.

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