A range trading opportunity for you?
Will Rolls Royce break support, or will it rise back to 925p?
- 880-925p rising channel since end of March
- Will the pattern repeat itself, rising back to recent highs of 925p?
- Shares -8.5% from 2019 highs; +14% from 2019 lows; +2% year-to-date.
- 8th April. African airline firms up order for aircraft powered by Rolls Royce
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Rolls Royce – An Example
Let’s say you like the range, you think it’s heading back towards 925p again. You decide to buy exposure to £10,000 worth of Rolls Royce using a CFD, at the current price of 903p. To do this, you need £2,000.
Let’s assume Rolls Royce rises to 925p (+3.5%). Your profit would be £350, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 1.5% from the current price. Rolls Royce falls 1.5% and hits your stop-loss. Your loss would be £150.
This is provided for information purposes only. It should not be taken as a recommendation.