A range trading opportunity for you?
Will ITV break support, or will it rise back to 138p?
- 125-138p range since November, bounced off floor
- Now trades 130p (at time of writing)
- Will the pattern repeat itself, testing the 138p ceiling?
- Shares -9.8% from 2019 highs; +4.6% from 2019 lows; +2.3% year-to-date.
- 27 Mar: ITV stands to gain from Apple’s TV Service says Liberum
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading ITV – An Example
Let’s say you like the range, you think it’s heading back towards 138p again. You decide to buy exposure to £10,000 worth of ITV using a CFD, at the current price of 130p. To do this, you need £2,000.
Let’s assume ITV rises to 138p (+7%). Your profit would be £700, 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. ITV falls 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.