A range trading opportunity for you?
Will Inmarsat break higher, or will it fall to 344p lows again?
- The Inmarsat falling range has developed since August.
- Shares fallen back from resistance ceiling 5 times.
- Now trading 399p (at time of writing).
- Will the pattern repeat itself, testing previous lows?
- Shares -39.0% from 2018 highs; +17.9% from 2018 lows; +5.4% year-to-date
- 14 Nov: CEO sees less need for satellite consolidation; struggling to explain transformation to investors
- 8 Nov: Shares sink as competition hits maritime division in 3Q, offsetting aviation strength
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Inmarsat – An Example
Let’s say you like the Inmarsat range, you think it’s heading back towards 344p again. You decide to sell exposure to £10,000 worth of Inmarsat using a CFD, at the current price of 399p. To do this, you need £2,000.
Let’s assume Inmarsat falls back to 344p (-13.8%). Your profit would be £1380, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Inmarsat rises 5% and hits your stop-loss. Your loss would be £500.
This is provided for information purposes only. It should not be taken as a recommendation.