Will John Wood continue falling, or will it rise again back to 684p December highs?

• John Wood shares have fallen close to 9% in the past 2 days (-3% today).
• Shares close to 515p 2018 lows. Currently trading at 518p (at the time of trading).
• John Wood specialises in engineering solutions for the oil & gas industry.
• Oil and oil services companies shares are down as WTI crude oil price fell below $50/barrel.
• Shares -33.3% from 2018 highs; currently trades at 2018 lows; -19.9% year-to-date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading John Wood – An Example

Let’s say you feel that the stock is a bargain and you think it could bounce back to recent highs of 684p. You decide to buy exposure to £10,000 worth of John Wood using a CFD, at the current price of 518p. To do this, you need £2,000.

Let’s assume John Wood recovers back to 684p December highs (+32%). Your profit would be £3200, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 8% from the current price. John Wood falls 8% and hits your stop-loss. Your loss would be £800.

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