Will Prudential continue falling, or will it rise again back to recent 1649p last week’s highs?

• Prudential shares have fallen over 7% in 1 week to trade 1432p (at time of writing).
• Shares already bounced from 1384p yesterday’s lows.
• Shares -29.23% from 2018 highs; +1.88% from 2018 lows; -24.5% year-to-date.
• 11 Dec: Prudential is a well-placed business and its shares are too cheap, says Deutsche Bank
• Can the shares regain recent highs?
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Prudential – An Example

Let’s say you feel that the stock is a bargain and you think it could bounce back to recent highs of 1649p. You decide to buy exposure to £10,000 worth of Prudential using a CFD, at the current price of 1432p. To do this, you need £2,000.

Let’s assume Prudential recovers back to 1649p (+15.1%). Your profit would be £1510, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 6% from the current price. Prudential falls 6% and hits your stop-loss. Your loss would be £600.

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