A range trading opportunity for you?
Will GlaxoSmithKline break resistance, or will it rise back to 1597p?
- 1521-1597p range since mid-Feb; Now 1521p (at time of writing)
- Will the pattern repeat itself, rising back to 1597p?
- Shares -5.5% from 2019 highs; +6.4% from 2019 lows; +2% year-to-date
- 9 May: GSK-Pfizer Healthcare deal not opposed in Australia
- 2 May: GSK has delicate balancing act, but could pay off says HSB
- Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal
Trading GlaxoSmithKline – An Example
Let’s say you like the GlaxoSmithKline range, you think it’s heading back up to 1597p again. You decide to buy exposure to £10,000 worth of GlaxoSmithKline using a CFD, at the current price of 1521p. To do this, you need £2,000.
Let’s assume GlaxoSmithKline rises back to 1597p (+4.9%). Your profit would be £490, 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. GlaxoSmithKline 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.