A trading opportunity for you?

Will Inchcape continue falling, or will it rise again back to recent 619p highs?

• Inchcape shares have fallen over 16% in the last week to trade 516.5p (at time of writing).
• Shares -37.5% from 2018 highs; +0.6% from 2018 lows; -34.0% year-to-date.
• The shares dropped last week after analysts cut growth forecasts amid fears of stalling new car sales (Telegraph)
• Can the stock regain recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News

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Trading Inchcape – An Example

Let’s say you feel that the stock is a bargain and you think it could bounce back to recent highs of 619p. You decide to buy exposure to £10,000 worth of Inchcape using a CFD, at the current price of 516.5p. To do this, you need £2,000.

Let’s assume Inchcape recovers back to 619p (+19.8%). Your profit would be £1980, 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. Inchcape 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.