A range trading opportunity for you?
Will Aviva break support, or will it rise back to 436p? (+5%)
- 412-436p range since mid-March; Now 415p (at time of writing)
- Will the pattern repeat itself, rising back to 437p?
- Shares -6.1% from 2019 highs; +14.2% from 2019 lows; +10.6% year-to-date.
- 29 Apr: Aviva among best bets to gain on lower life expectancy says Jefferies
- 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 436p again. You decide to buy exposure to £10,000 worth of Aviva using a CFD, at the current price of 415p. To do this, you need £2,000.
Let’s assume Aviva rises to 436p (+5%). Your profit would be £500, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price. Aviva falls 2% and hits your stop-loss. Your loss would be £200.
This is provided for information purposes only. It should not be taken as a recommendation.