A range trading opportunity for you?
Will GlaxoSmithKline break resistance, or will it fall back to 1519p?
- 1519-1584p narrowing range; Now 1569p (at time of writing)
- Will the pattern repeat itself, falling back to 1520p?
- Shares -2.5% from 2019 highs; +9.8% from 2019 lows; +5.2% year-to-date
- 28 May: Fitch: Downgrades to ‘A-‘, reflects leverage remaining high 2019-2021
- 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 down to 1519p again. You decide to buy exposure to £10,000 worth of GlaxoSmithKline using a CFD, at the current price of 1569p. To do this, you need £2,000.
Let’s assume GlaxoSmithKline falls back to 1519p (-3.1%). Your profit would be £310, 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 rises 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.