Will IG Group continue falling, or will it rise again back to 643p Monday highs?

• IG Group fallen over 13% from Monday’s highs.
• H1 revenue -6% yoY, pre-tax profit -17% after new regulations.
• Warned about about a fall in 2019 revenue before a return to growth.
• Now trades 568p (at time of writing).
• Shares -11.6% from 2019 highs; now trading at 2019 lows; -1.5% year-to-date.
• Can the stock recover to recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading IG Group – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards Monday high of 643p. You decide to buy exposure to £10,000 worth of IG Group using a CFD, at the current price of 568p. To do this, you need £2,000.

Let’s assume IG Group recovers back to 643p (+13.2%). Your profit would be £1320, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 6% from the current price. IG Group falls 6% and hits your stop-loss. Your loss would be £600.

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