A range trading opportunity for you?
Will Meggitt break support or will it rise back to 540p highs?
- Falling range since February; Rising support since Apr 2018
- Bounced 3 times; Now 507p (at time of writing)
- Will the pattern repeat itself, the shares rising to 540p highs?
- Shares -10.8% from 2019 highs; +11.3% from 2019 lows; -7.8% year-to-date
- 15 May: Confident to deliver on 2021 targets
- Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal
Trading Meggitt – An Example
Let’s say you like the range, you think it’s heading back towards 540p again. You decide to buy exposure to £10,000 worth of Meggitt using a CFD, at the current price of 507p. To do this, you need £2,000.
Let’s assume Meggitt recovers to 540p (+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 3% from the current price. Meggitt 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.