A range trading opportunity for you?
Will Aviva break support, or will it fall back to 400p? (7%)
- 430-400p falling channel since beginning of March
- Will the pattern repeat itself, falling back to 400p?
- Shares -2.5% from 2019 highs; +17% from 2019 lows; -13% year-to-date.
- 8th April. African airline firms up order for aircraft powered by Rolls Royce
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Aviva – An Example
Let’s say you like the range, you think it’s heading back towards 400p again. You decide to sell exposure to £10,000 worth of Aviva using a CFD, at the current price of 432p. To do this, you need £2,000.
Let’s assume Aviva falls 400p (-7%). Your profit would be £700, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Aviva rises 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.