A range trading opportunity for you?
Will Standard Chartered break support, or will it fall back to 575p?
- 650-575p range since August
- Now trades 641p (at time of writing)
- Will the pattern repeat itself, dropping back to 575p?
- Shares -2.5% from 2019 highs; +11% from 2019 lows; -11% year-to-date.
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Standard Chartered – An Example
Let’s say you like the range, you think it’s heading back towards575p again. You decide to sell exposure to £10,000 worth of Standard Chartered using a CFD, at the current price of 641p. To do this, you need £2,000.
Let’s assume Standard Chartered drops to 575p (-11%). Your profit would be £1,100, 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. Standard Chartered rises 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.