Is this breakout a good trade for you?
Will RBS turn, or will it continue up towards 260p (+15%)?
- Breakout above 221p to trade 225p (at time of writing).
- The ‘trend is your friend’. Will it continue towards 260p (+15%)?
- Shares -17.9% from 2019 highs; +7.6% from 2019 lows; +4% year-to-date.
- 21 Jun: RBS bidding for Tesco Mortgage Book says Sky News
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading RBS – An Example
Let’s say the breakout appeals to you, you think it’s likely to continue to 260p . 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 260p (+15%). Your profit would be £1500, 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.