Will Pearson continue falling, or will it rise again back to yesterday’s high of 988p?

• Pearson shares have fallen as low as -7.4% since yesterday’s highs.
• Shares down as the education provider reported underlying revenues -1% in 2018.
• Currently trading at 920p (at time of writing).
• Shares -5.2% from 2019 highs; +5.4% from 2019 lows; -1.2% year-to-date.
• Can the stock recover to recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Pearson – An Example

Let’s say you feel that the stock is a bargain and you think it could bounce back to recent highs of 988p. You decide to buy exposure to £10,000 worth of Pearson using a CFD, at the current price of 920p. To do this, you need £2,000.

Let’s assume Spire Healthcare recovers back to yesterday’s high of 988p (+7.4%). Your profit would be £740, from your initial investment of £2000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Pearson falls 3% and hits your stop-loss. Your loss would be £300.

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