Will Saga continue falling, or will it rise again back to recent 141p October highs?

• Saga shares have fallen 19.5% from Octobers’s 141p highs.
• Currently trading at 118p (at time of writing).
• Shares -16.4% from 2018 highs; +9.35% from 2018 lows; -5.9% year-to-date.
• Recent share price range: Oct lows 117.9p; Oct highs 141p.
• 27 Sept: Analysts at Hargreaves Lansdown say Saga has made good progress in controlling costs despite a challenging environment in motor insurance and tour market.
• Can the stock regain recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News

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Trading Saga – An Example

Let’s say you feel that the stock is a bargain and you think it could bounce back to recent highs of 141p. You decide to buy exposure to £10,000 worth of Saga using a CFD, at the current price of 118p. To do this, you need £2,000.

Let’s assume Saga recovers back to 141p (+19.5%). Your profit would be £1950, from your initial investment of £2000.

Conversely, let’s assume you open the above position, and place a stop-loss at 7% from the current price. Saga falls 7% and hits your stop-loss. Your loss would be £700.

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