Will Renishaw continue falling, or will it rise again back to November high of 4406p?

• Renishaw shares have fallen over 20% from November’s 4406p highs
• Shares falling on the news that competitor Smiths Group will split its Medical division, creating more competition.
• Renishaw manufactures healthcare measurement systems.
• Currently trading at 3667p (at time of writing).
• Shares -36.9% from 2018 highs; +1.4% from 2018 lows; -30% year-to-date.
• Recent share price range: Nov highs 4406p; now trading close to Oct-Nov lows.
• Can the stock recover to November highs?
• Source: Dow Jones, Bloomberg, FT, Company News

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Trading Renishaw – An Example

Let’s say you feel that the stock is a bargain and you think it could bounce back to recent highs of 4406p. You decide to buy exposure to £10,000 worth of Renishaw using a CFD, at the current price of 3667p. To do this, you need £2,000.

Let’s assume Renishaw recovers back to 4406p November levels (+20.1%). Your profit would be £1960, from your initial investment of £2000.

Conversely, let’s assume you open the above position, and place a stop-loss at 8% from the current price. Renishaw falls 8% and hits your stop-loss. Your loss would be £800.

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