A range trading opportunity for you?
Will easyJet break support, or will it rise again back to 1263p?
- 1029-1263p range since October; Now 1037p (at time of writing)
- Will the pattern repeat itself, rising back to 1263p?
- Shares -23.9% from 2019 highs; +4.3% from 2019 lows; -5.8% year-to-date
- 8 Apr: EasyJet upgraded at Bernstein after profits warning
- 2 Apr: Ryanair faces worse summer than easyJet, says Macquarie
- Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal
Trading easyJet – An Example
Let’s say you like the range, you think it’s heading back towards 1263p again. You decide to buy exposure to £10,000 worth of easyJet using a CFD, at the current price of 1037p. To do this, you need £2,000.
Let’s assume easyJet recovers back to 1263p (+21%). Your profit would be £2100, 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.