Tate & Lyle
A range trading opportunity for you?
Will Tate & Lyle break support, or will it rise to the 747p range ceiling?
- 681-747p rising range since October.
- Now trades 686p (at time of writing)
- Will the pattern repeat itself, rising back to 747p range ceiling?
- Shares -7% from 2019 highs; +4.7% from 2019 lows; +4% year to date
- 7 Feb: Focus on lifting returns, cash flow working says Liberum
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Tate & Lyle – An Example
Let’s say you like the range, you think it’s heading back towards 747p. You decide to buy exposure to £10,000 worth of Tate & Lyle using a CFD, at the current price of 686p. To do this, you need £2,000.
Let’s assume Tate & Lyle rises to 747p range ceiling (+8.8%). Your profit would be £880, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Tate & Lyle falls 3% and hits your stop-loss. Your loss would be £300.
This is provided for information purposes only. It should not be taken as a recommendation.