A range trading opportunity for you?
Will Vesuvius break lower, or will it rise back again to 650p?
- The Vesuvius range has developed since February
- Bounced off 555p support zone 4 times. Now trading 560p (at time of writing)
- Will the pattern repeat itself, testing previous highs?
- Shares -13.9% from 2018 highs; +4% from 2018 lows; -4.1% year-to-date
- Global leader in molten metal flow engineering
- 26 July: Vesuvius shares up on 44% rise in pre-tax profit
- 26 July: Vesuvius looking strong at halfway point says Numis
- Source: Bloomberg, FT, Reuters, DJ Newswires
Trading Vesuvius – An Example
Let’s say you like the Vesuvius range, you think it’s heading back towards 650p again. You decide to buy exposure to £10,000 worth of Vesuvius using a CFD, at the current price of 560p. To do this, you need £2,000.
Let’s assume Vesuvius rises back to 650p (+16%). Your profit would be £1600, 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. Vesuvius 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.