A range trading opportunity for you?
Will RSA Insurance break support, or will it rise back to 609p? (+4.2%)
- 578-609p rising range; Now 584p (at time of writing)
- Will the pattern repeat itself, rising to 609p (+4.2%)?
- Shares -2.4% from 2019 highs; +17% from 2019 lows; +13.7% year-to-date.
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading RSA Insurance – An Example
Let’s say you like the range, you think it’s heading back towards 609p again. You decide to buy exposure to £10,000 worth of RSA Insurance using a CFD, at the current price of 584p. To do this, you need £2,000.
Let’s assume RSA Insurance rises to 609p (+4.2%). Your profit would be £420, 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. RSA Insurance falls 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.