Will Persimmon continue falling, or will it rise again back to 2354p (21%)April highs?

• Persimmon shares as low as -21% since April highs.
• Now trades 1975p (at time of writing).
• Shares -20% from 2019 highs; +6% from 2019 lows; +5% year-to-date.
• Can the stock recover to recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News, 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 2354p. You decide to buy exposure to £10,000 worth of Persimmon using a CFD, at the current price of 1975p. To do this, you need £2,000.

Let’s assume Persimmon recovers back to April highs of 2354p (+21%). Your profit would be £2100, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price. Persimmon falls 4% and hits your stop-loss. Your loss would be £400.

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