A range trading opportunity for you?
Will BAE Systems break support, or will it rise back to 508p?
- 3rd bounce off floor of narrowing range.
- Trading 467p (at time of writing)
- Will the pattern repeat itself, rising back to the 508p ceiling?
- Shares -11.9% from 2019 highs; +3.6% from 2019 lows; +1.7% year-to-date.
- 9 May: Trading in Line With Views; reiterates profit and debt guidance
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading BAE Systems– An Example
Let’s say you like the range, you think it’s heading back towards 508p again. You decide to buy exposure to £10,000 worth of BAE Systems using a CFD, at the current price of 467p. To do this, you need £2,000.
Let’s assume BAE Systems rises to 508p (+8.7%). Your profit would be £870, 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. BAE Systems 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.