A range trading opportunity for you?
Will Bellway break resistance, or will it fall back to 2407p?
- Falling range channel since mid-June.
- Fallen from resistance 4 times. Now 2897p (at time of writing)
- Will the pattern repeat itself, shares testing prior 2407p lows?
- Shares -3% from 2019 highs; +17% from 2019 lows; +15.2% year-to-date
- Smaller peer Countryside said Q1 reservations slowed.
- Brexit uncertainty hampering the housing market.
- Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal
Trading Bellway – An Example
Let’s say you like the Bellway range, you think it’s heading back down to 2407p again. You decide to sell exposure to £10,000 worth of Bellway using a CFD, at the current price of 2897p. To do this, you need £2,000.
Let’s assume Bellway falls back to 2407p Dec lows (-16.9%). Your profit would be £1690, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Bellway rises 5% and hits your stop-loss. Your loss would be £500.
This is provided for information purposes only. It should not be taken as a recommendation.