Will Provident Financial continue falling, or will it rise again back to 520p highs (+27%)?

• Shares -25% from recent highs; Now trades 408p (at time of writing).
• Shares -38.2% from 2019 highs; +3.5% from 2019 lows; -28.5% year-to-date.
• Can the stock recover to recent 520p highs (+27%)?
• 7 Jun: Dropped NSF bid removes uncertainty
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Provident – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards recent high of 520p. You decide to buy exposure to £10,000 worth of Provident using a CFD, at the current price of 408p. To do this, you need £2,000.

Let’s assume Provident recovers back to 520p highs (+27%). Your profit would be £2700 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. Provident 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.