A range trading opportunity for you?
Will Lloyds break support, or will it rise back to 65p?
- 61-65p range; rising channel since February
- Trading 62p (at time of writing)
- Will the pattern repeat itself, rising back to recent highs of 65p?
- Shares -6% from 2019 highs; +20% from 2019 lows; -7% year-to-date.
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Lloyds – An Example
Let’s say you like the range, you think it’s heading back towards 65p again. You decide to buy exposure to £10,000 worth of Lloyds using a CFD, at the current price of 62.p. To do this, you need £2,000.
Let’s assume Lloyds rises to 65p (+5%). Your profit would be £500, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 2.5% from the current price. Lloyds falls 2.5% and hits your stop-loss. Your loss would be £250.
This is provided for information purposes only. It should not be taken as a recommendation.