Is this trend a good trading opportunity?
Will Barclays turn, or will it continue to rise to 170p? (+7.6%)
- Shares +9% from recent lows; Breakout above 155p
- Now trading 158p (at time of writing);
- Will the positive momentum continue towards highs of 170p? (+7.6%)
- Shares -7.1% from 2019 highs; +8.8% from 2019 lows; +5.2% year-to-date.
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Barclays – An Example
Let’s say the trend appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of Barclays using a CFD, at the current price of 158p. To do this, you need £2,000.
Let’s assume the Barclays trend continues to highs of 170p (+7.6%). Your profit would be £760 from your initial investment of £2000.
Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Barclays falls 3% and hits your stop-loss. Your loss would be £300.
This is provided for information purposes only. It should not be taken as a recommendation.