A range trading opportunity for you?
Will United Utilities break support, or will it rise back to 911p?
- 807-911p rising channel range since September
- Trading 821p (at time of writing)
- Will the pattern repeat itself, rising back to recent highs of 911p?
- Shares -6.6% from 2019 highs; +14.0% from 2019 lows; +11.5% year-to-date.
- 11 Apr: UK Water regulator says bills to fall for some 7.9m households in England
- 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 911p again. You decide to buy exposure to £10,000 worth of United Utilities using a CFD, at the current price of 821p. To do this, you need £2,000.
Let’s assume United Utilities rises to 911p (+10.9%). Your profit would be £1090, 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.