Will Persimmon continue falling, or will it rise again back to 2408p November highs?

• Persimmon share price has fallen over 8% in the past 2 day, -19.6% from November highs.
• Now trading at 1935p (at the time of writing).
• Shares are down over -32.5% from 2018 highs, now trading at 2018 lows, -29.4% year-to-date.
• UK Index Housebuilder shares in a month-long downtrend due to ongoing Brexit uncertainty.
• Can the shares regain recent highs?
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Persimmon – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards 2408p. You decide to buy exposure to £10,000 worth of Persimmon using a CFD, at the current price of 1935p. To do this, you need £2,000.

Let’s assume Persimmon recovers back to November highs of 2408p (+24.4%). Your profit would be £2440, 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. Persimmon 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.