Is this breakout a good trade for you?
Will RSA Insurance turn, or will it continue to rise towards 594p?
- Twin breakout above 550p; successfully retested for support
- Now trading 551p (at time of writing).
- Could the breakout see the shares rally back to 594p?
- Shares -1.6% from 2019 highs; +10.5% from 2019 lows; +7.4% year-to-date
- 9 May; Q1 net written premiums +3%; operating profit rises at constant FX,
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading RSA Insurance – An Example
Let’s say the breakout appeals to you, you think it’s likely to continue towards 594p. You decide to buy exposure to £10,000 worth of RSA Insurance using a CFD, at the current price of 551p. To do this, you need £2,000.
Let’s assume the RSA Insurance trend continues to highs of 594p (+7.8%). Your profit would be £780, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. RSA Insurance breaks lower, falling 3% and it hits your stop-loss. Your loss would be £300.
This is provided for information purposes only. It should not be taken as a recommendation.