Will Stagecoach continue falling, or will it recover yesterday’s 148p close?

• Stagecoach down 8% this morning after a broker downgrade (Jefferies)
• It has already found support to trade 138.6p (at time of writing)
• Shares -20.5% from 2019 highs; +7.4% from 2019 lows; -4.7% year-to-date.
• Can the stock recover yesterday’s 148p close?
• 4 Apr: Saga expects lower FY 2020 profits on new insurance strategy; cuts dividend
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

Click to enlarge

Trading Stagecoach – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards 148p highs. You decide to buy exposure to £10,000 worth of Stagecoach using a CFD, at the current price of 138p. To do this, you need £2,000.

Let’s assume Stagecoach recovers back to 148p highs (+7.2%). Your profit would be £720, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price. Stagecoach falls 2% and hits your stop-loss. Your loss would be £200.

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