Is this breakout a good trade for you?
Will Standard Chartered turn, or will it continue to rise beyond 700p? (+5%)
- The shares have broken above recent highs of 650p
- Shares trading 672p (at time of writing).
- The ‘trend is your friend’. Will it continue?
- UK banks rally after JP Morgan beat consensus (12th April)
- 31 Oct: Goodbody says StanChart shares boosted by new returns target
- Source: Bloomberg, FT, Reuters, DJ Newswires
Trading Standard Chartered – An Example
Let’s say the breakout appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of Standard Chartered using a CFD, at the current price of 672p. To do this, you need £2,000.
Let’s assume the Standard Chartered trend continues to 700p? (+5%)Your profit would be £500, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 2.5% from the current price. Standard Chartered breaks lower, falling 2.5% and it hits your stop-loss. Your loss would be £25.
This is provided for information purposes only. It should not be taken as a recommendation.