A range trading opportunity for you?
Will TalkTalk break support, or will it rise again back to 137p?
- The TalkTalk range has developed since early August.
- Shares bounced off a 112p range floor 4 times. It is now at 116p (at time of writing)
- Will the pattern repeat itself, shares testing previous highs?
- Shares -25.3% from 2018 highs; +28.6% from 2018 lows; +1.5% year-to-date
- 14 Dec: Ofcom launches review of UK Broadband prices to make sure “best pricing” offered
- Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal
Trading TalkTalk – An Example
Let’s say you like the range, you think it’s heading back towards 135p again. You decide to Buy exposure to £10,000 worth of TalkTalk using a CFD, at the current price of 116p. To do this, you need £2,000.
Let’s assume TalkTalk rises back to range ceiling around 135p (+16.4%). Your profit would be £1640, 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. TalkTalk 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.