Is this trend a good trading opportunity?
Will BT turn, or will it continue to rise beyond 241p August highs?
- The chart shows BT price action over the last 5 days.
- The shares have broken above a resistance level at 231.7p to trade 238p (at time of writing).
- 24 Sept: BT in talks to make Philip Jansen new CEO when he leaves Worldpay.
- Shares -17.8% from 2018 highs; +13.6% from 2018 lows; -12.2% year-to-date.
- In the last week, the shares have risen over 6.2%%. Will this momentum continue?
Trading BT – 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 BT using a CFD, at the current price of 238p. To do this, you need £2,000.
Let’s assume BT trend continues to May highs of 252p (+5.8%). Your profit would be £580, 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. BT falls 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.