A range trading opportunity for you?
Will Beazley break resistance, or will it fall back to 501p?
- 501-583p range since October; Now trades 562p (at time of writing)
- Will the pattern repeat itself, testing the 501p floor?
- Shares -3.2% from 2019 highs; +15.8% from 2019 lows; +11.9% year-to-date.
- 16 Apr: Fitch affirms Beazley’s IFS rating at ‘A+’; Outlook Stable
- 11 Apr: Beazley better value than Hiscox says Berenberg
- 7 Feb: full year profits down on catastrophe losses, low returns
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Beazley – An Example
Let’s say you like the range, you think it’s heading back towards 501p again. You decide to sell exposure to £10,000 worth of Beazley using a CFD, at the current price of 562p. To do this, you need £2,000.
Let’s assume Beazley falls to 501p (-10.8%). Your profit would be £1080, 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. Beazley 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.