Is this trend a good trading opportunity?
Will BBA Aviation turn back, or will it continue to previous 307p October highs?
- Shares +10.4% from April lows; Now 274p (at the time of writing).
- Will the record high keep going towards previous October highs of 307p?
- 5 Mar: BBA Aviation 2018 Pretax Profit Up
- Shares -0.8% from 2019 highs; +29% from 2019 lows; +25.4% year-to-date.
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading BBA Aviation– 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 BBA Aviation using a CFD, at the current price of 274p. To do this, you need £2,000.
Let’s assume the BBA Aviation trend continues to previous 307p highs (+12%). Your profit would be £1200, 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. BBA Aviation falls 5% and hits your stop-loss. Your loss would be £500.
This is provided for information purposes only. It should not be taken as a recommendation.