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Home / Momentum / BAE Systems

This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.

BAE Systems

Is this trend a good trading opportunity?

Will BAE Systems turn, or will it continue to fall below 508p 28-month lows ?

  • The chart shows BAE Systems price action since June 2016 Brexit-vote lows.
  • Shares -23.2% from 2018 highs; +0.2% from 2018 lows; -11.24% year-to-date.
  • Shares have fallen almost 20% in the last month. Will this momentum continue?
  • 30 Oct: BAE and Rolls Royce weak after General Electric results missed expectations and it cut the dividend
  • 24 Oct: Bernstein cuts target price based on delayed sales to Typhoon fighters, military vehicles and military ki
  • US Army refocusing priorities meaning potentially lower Bradley armored fighting vehicle sales and slower armored multi-purpose vehicle sales
  • Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading BAE Systems – An Example

Let’s say the trend appeals to you, you think it’s likely to continue. You decide to sell short exposure to £10,000 worth of BAE Systems using a CFD, at the current price of 508.7p. To do this, you need £2,000.

Let’s assume the BAE Systems trend continues to June 2016 lows of 464p (-8.8%). Your profit would be £880, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price. BAE Systems rises 4% and hits your stop-loss. Your loss would be £400.

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

This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.


Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance.

Prepared by Michael van Dulken, Head of Research
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
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