A range trading opportunity for you?
Will Imperial Brands break support, or will it rise again back to 2625p?
- 2490-2625p range with rising support since Dec
- Now 2515p (at time of writing)
- Will the pattern repeat itself, rising back to 2625p?
- Shares -7.3% from 2019 highs; +8.6% from 2019 lows; +5.8% year-to-date
- 3 Apr: FDA investigating reports of seizures after E-Cigarette use
- 28 Mar: Citigroup upgrades to Buy, target upped to £30
- Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal
Trading Imperial Brands – An Example
Let’s say you like the range, you think it’s heading back towards 2625p again. You decide to buy exposure to £10,000 worth of Imperial Brands using a CFD, at the current price of 2515p. To do this, you need £2,000.
Let’s assume Imperial Brands recovers back to 2625p (+4.3%). Your profit would be £430, 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. Imperial Brands 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.