A range trading opportunity for you?
Will Intertek break support, or will it rise back to 5750p range ceiling?
- 4620-5750p rising range since March, bounced off the bottom of the range.
- Now trades 5544p (at time of writing)
- Will the pattern repeat itself, testing 5800p range ceiling?
- Shares -4.2% from 2019 highs; +17.3% from 2019 lows
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Intertek – An Example
Let’s say you like the range, you think it’s heading back towards 5750p again. You decide to buy exposure to £10,000 worth of Intertek using a CFD, at the current price of 5544p. To do this, you need £2,000.
Let’s assume Intertek rises to 5750p range ceiling (+3.7%). Your profit would be £370, 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. Intertek rises 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.