A range trading opportunity for you?
Will Unilever break support, or will it rise back to 4383p?
- Sideways range since last June with 3 bounces
- Bounce and Breakout from falling range to to trade 4127p (at time of writing)
- Will the pattern repeat itself, rising back to 4383p?
- Shares -8.9% from 2018 highs; +11.6% from 2018 lows; +0.5% year-to-date.
- 4 feb: Jefferies says Unilever results aren’t as bad as they look
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Unilever – An Example
Let’s say you like the Unilever range, you think it’s heading back up to 4383p again. You decide to buy exposure to £10,000 worth of Unilever using a CFD, at the current price of 4127p. To do this, you need £2,000.
Let’s assume Unilever rises back to 4383p (+6.2%). Your profit would be £620, 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. Unilever 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.