A range trading opportunity for you?
Will RBS break support or will it rise back to 260p (+15%)?
- Narrowing upward range about to break; Now 225.8p (at time of writing)
- Will the pattern repeat itself, the shares rising back to 260p (+15%)?
- Shares -17.7% from 52 week high; +12.8% from 2019 lows
- JP Morgan neutral TP 260p; Barclays Overweight TP 280p
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading RBS – An Example
Let’s say you like the range, you think it’s heading back towards 260p again. You decide to buy exposure to £10,000 worth of RBS using a CFD, at the current price of 221p. To do this, you need £2,000.
Let’s assume RBS recovers to 260p (+19%). Your profit would be £1900, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. RBS falls 5% and hits your stop-loss. Your loss would be £500.
This is provided for information purposes only. It should not be taken as a recommendation.