A range trading opportunity for you?
Will Compass Group break support, or will it rise back to 1800p?
- Rising range since November, bounced off floor
- Now trades 1711p (at time of writing)
- Will the pattern repeat itself, testing previous highs of 1800p?
- Shares -6.7% from 2019 highs; +8.5% from 2019 lows; +3.6% year-to-date.
- 7 Feb: Compass shares hit record high after Q1 revenue growth
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Compass Group – An Example
Let’s say you like the range, you think it’s heading back towards 1800p again. You decide to buy exposure to £10,000 worth of Compass Group using a CFD, at the current price of 1711p. To do this, you need £2,000.
Let’s assume Compass Group rises to 1800p (+5.2%). Your profit would be £520, 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. Compass Group 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.