A range trading opportunity for you?
Will Vodafone break higher, or will it fall back to 143p lows again?
- The Vodafone falling range exists since early 2018
- Bounced back from falling highs trendline 3 times, most recently this week.
- Now trading 162p (at time of writing)
- Will the pattern repeat itself, testing previous lows?
- Shares -15.4% from 2018 highs; +13.3% from 2018 lows; -13.6% year-to-date
- 16 Nov: Deutsche Telekom says Germany’s 5G auction terms ‘Unrealistic’
- Markets concerned about slow growth, debt-pile and expensive M&A to chase growth
- Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal
Trading Vodafone – An Example
Let’s say you like the range, you think it’s heading back towards 143p again. You decide to sell exposure to £10,000 worth of Vodafone using a CFD, at the current price of 1622p. To do this, you need £2,000.
Let’s assume Vodafone falls back to 143p (-11.7%). Your profit would be £1170, 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. Vodafone rises 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.