A range trading opportunity for you?
Will Genel Energy break support, or will it rise back to 230p?
- Sideways range since March, bounced off floor
- Now trades 206p (at time of writing)
- Will the pattern repeat itself, rising back to the ceiling at 230p ceiling?
- Shares -11.6% from 2019 highs; +24.5% from 2019 lows; +16.4% year-to-date.
- 16 Apr: Says production and net cash rising, portfolio to provide material growth
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Genel Energy – An Example
Let’s say you like the range, you think it’s heading back towards 230p again. You decide to buy exposure to £10,000 worth of Genel Energy using a CFD, at the current price of 206p. To do this, you need £2,000.
Let’s assume Genel Energy rises to 230p (+11.6%). Your profit would be £1160, 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. Genel Energy 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.