A range trading opportunity for you?
Will Burberry break resistance, or will it fall back to 1619p?
- Sideways channel since Oct,
- Fallen from resistance 3 times. Now 1877p (at time of writing)
- Will the pattern repeat itself, falling back to 1619p?
- Shares -19.7% from 2018 highs; +26.8% from 2018 lows; +8.3% year-to-date
- 24 Jan: Berenberg says economic slowdown may tarnish Burberry makeover
- 24 Jan: RBC says turnaround may take time
- Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal
Trading Burberry – An Example
Let’s say you like the Burberry range, you think it’s heading back down to 1619p again. You decide to sell exposure to £10,000 worth of Burberry using a CFD, at the current price of 1877p. To do this, you need £2,000.
Let’s assume Burberry falls back to 1619p (-13.7%). Your profit would be £1370, 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. Burberry 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.