A range trading opportunity for you?
Will Lloyds break support, or will it rise back to 66.4p?
- 61.7-66.4p range since mid-March, bounced off floor
- Now trades 62.3p (at time of writing)
- Will the pattern repeat itself, testing previous 66.4p ceiling?
- Shares -6.4% from 2019 highs; +24.7% from 2019 lows; +20.6% year-to-date.
- 2 May: Q1 operating profits beat expectations; reiterates FY guidance
- 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 66.4p again. You decide to buy exposure to £10,000 worth of Lloyds using a CFD, at the current price of 62.3p. To do this, you need £2,000.
Let’s assume Lloyds rises to 66.4p (+6.5%). Your profit would be £650, 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. Lloyds 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.