A range trading opportunity for you?
Will United Utilities break support, or will it rise back to 900p?
- 805-901p range; rising channel since September
- Trading 824p (at time of writing)
- Will the pattern repeat itself, rising back to recent highs of 900p?
- Shares -6.3% from 2019 highs; +14.4% from 2019 lows; +11.9% year-to-date.
- Defensives seeing renewed interest
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading United Utilities – An Example
Let’s say you like the range, you think it’s heading back towards 900p again. You decide to buy exposure to £10,000 worth of United Utilities using a CFD, at the current price of 824p. To do this, you need £2,000.
Let’s assume United Utilities rises to 900p (+9.2%). Your profit would be £920, 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. United Utilities 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.