A range trading opportunity for you?
Will Reckitt Benckiser break resistance, or will it fall back to 6122p?
- 6122-6693p range; Now 6596p (at time of writing)
- Will the pattern repeat itself, falling back to 6122p?
- Shares -1.9% from 2019 highs; +17% from 2019 lows; +4.2% year-to-date
- 11 Jul:Reckitt Benckiser to pay $1.4B to settle US opioid-addiction drug probes.
- Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal
Trading Reckitt Benckiser – An Example
Let’s say you like the Reckitt Benckiser range, you think it’s heading back down to 6122p again. You decide to short exposure to £10,000 worth of Reckitt Benckiser using a CFD, at the current price of 6581p. To do this, you need £2,000.
Let’s assume Reckitt Benckiser falls back to 6000p (-7.5%). Your profit would be £750, 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. Reckitt Benckiser rises 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.