Will John Wood continue falling, or will it rise again back to 647p mid-Dec highs?

• John Wood shares have fallen over 25% since mid-December.
• Shares already over 8% off their worst levels. Currently trades 512p (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 -0.3% from 2019 highs; +5.1% from 2018 lows; -1.3% year-to-date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

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 647p. You decide to buy exposure to £10,000 worth of John Wood using a CFD, at the current price of 512p. To do this, you need £2,000.

Let’s assume John Wood recovers back to 647p mid-December highs (+26.4%). Your profit would be £2640, 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.