A range trading opportunity for you?
Will easyJet break support, or will it rise again back to 1280p?
- The easyJet range has developed since mid-October
- Bounced off 1100p support zone 3 times, most recently this week.
- Now trading 1134p (at time of writing)
- Will the pattern repeat itself, testing recent 1280p highs?
- Shares -38.8% from 2018 highs; +4.2% from 2018 lows; -22.6% year-to-date.
- 27 Nov: Liberum ups price target on lower fuel prices
- 22 Nov: HSBC says easyjet could benefit from airline consolidation
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading easyJet – An Example
Let’s say you like the easyJet range, you think it’s heading back towards 1280p again. You decide to buy exposure to £10,000 worth of easyJet using a CFD, at the current price of 1134p. To do this, you need £2,000.
Let’s assume easyJet rises back to 1280p (+12.9%). Your profit would be £1290, 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. easyJet falls 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.