A range trading opportunity for you?
Will Renishaw break lower, or will it rise back to 4500p channel ceiling again?
- Renishaw shares are trading in a rising range since mid-October.
- Bounced off support zone 4 times.
- Now trading 3928p (at time of writing)
- Will the pattern repeat itself, testing previous highs?
- Shares -33.2% from 2018 highs; +7.6% from 2018 lows; -7.7% year-to-date
- 18 Oct: Renishaw said Q3 revenue +8% YoY and confident in future prospects.
- Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal
Trading Renishaw – An Example
Let’s say you like the range, you think it’s heading back towards 4500p channel ceiling again. You decide to buy exposure to £10,000 worth of Renishaw using a CFD, at the current price of 43928p. To do this, you need £2,000.
Let’s assume Renishaw rise back to 4500p rising channel ceiling (+14.6%). Your profit would be £1460, 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. Renishaw 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.