Will RBS turn, or will it continue up towards 297p?

• Breakout above 249p to trade 255p (at time of writing).
• The ‘trend is your friend’. Will it continue towards 297p?
• Shares -1.0% from 2019 highs; +20.4% from 2019 lows; +17.6% year-to-date.
• 18 Feb: UBS says UK banks still cheap despite tough 4Q
• 15 Feb: Citi says RBS cash returns are impressive and could return in 2019
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading RBS – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue to 297p . You decide to buy exposure to £10,000 worth of RBS using a CFD, at the current price 255p (at time of writing). To do this, you need £2,000.

Let’s assume the RBS trend continues upwards to 297p (+16.5%). Your profit would be £1650, 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. RBS breaks lower, falling 5% and it hits your stop-loss. Your loss would be £500.

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