Will Saga break support, or will it rise again back to 140p October highs?

• Saga has a 118p support zone since April, bouncing 5 times.
• Now trading 118.5p (at time of writing).
• Shares -16.4% from 2018 highs; +9.4% from 2018 lows; -5.9% year-to-date.
• Will the pattern repeat itself, with the shares bouncing off support again?
• 27 Sept: Numis says H1 results (in-line, profits up) show signs of promise
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading Saga – An Example

Let’s say you like the Saga chart and you think the price is heading back towards 140p again. You decide to buy exposure to £10,000 worth of Saga using a CFD, at the current price of 118.5p. To do this, you need £2,000.

Let’s assume Saga rises back to 140p (+18.1%). Your profit would be £1810, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Saga falls 5% and hits your stop-loss. Your loss would be £500.

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