A range trading opportunity for you?
Will Convatec break support, or will it rise back to 147p?
- Rising channel since late January.
- Bounced from support zone around 140p. Now 141.6p (at time of writing)
- Will the pattern repeat itself, rising back to 147p?
- Shares -2.6% from 2019 highs; +10.4% from 2019 lows; +1.7% year-to-date
- 26 Oct: Wound care maker obtained clearance from the US health regulator.
- Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal
Trading Convatec – An Example
Let’s say you like the Convatec range, you think it’s heading back up to 147p again. You decide to buy exposure to £10,000 worth of Convatec using a CFD, at the current price of 141.6p. To do this, you need £2,000.
Let’s assume Convatec rises back to 147p (+3.8%). Your profit would be £380, 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. Convatec 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.