A range trading opportunity for you?
Will Barratt Developments break support, or will it rise again back to 623p?
- 579-623p range since March; Now 590p (at time of writing)
- Will the pattern repeat itself, rising back to 623p?
- Shares -6% from 2019 highs; +30.9% from 2019 lows; +27.5% year-to-date
- 6 May: Jan-May total forward sales +2.4%; Outlook above board’s views
- Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal
Trading Barratt Developments – An Example
Let’s say you like the range, you think it’s heading back towards 623p again. You decide to buy exposure to £10,000 worth of Barratt Developments using a CFD, at the current price of 590p. To do this, you need £2,000.
Let’s assume Barratt Developments recovers back to 623p (+5.6%). Your profit would be £560, 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. Barratt Developments 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.