Will Redrow continue falling, or will it recover to March highs of 644p?

• Redrow is down 5% from March highs after issuing shares for a share scheme
• After a 3% bounce, they now trade 617p (at time of writing)
• Shares -5.5% from 2019 highs; +34% from 2019 lows; +3% year-to-date.
• Can the stock recover March highs of 644p?
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Redrow – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards 644p highs. You decide to buy exposure to £10,000 worth of Redrow using a CFD, at the current price of 617p. To do this, you need £2,000.

Let’s assume Redrow recovers back to 644p highs (+5%). Your profit would be £500, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 2.5% from the current price. Redrow falls 2.5% and hits your stop-loss. Your loss would be £250.

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