A range trading opportunity for you?
Will Vodafone break support, or will it rise back to 140p?
- Falling range since Jan, bounced off floor
- Now trades 126p (at time of writing)
- Will the pattern repeat itself, rising back to the ceiling at 140p ceiling?
- Shares -20.6% from 2019 highs; +1.7% from 2019 lows; -17.6% year-to-date.
- 15 May: Vodafone still worth a call despite dividend cut says Barclays
- 14 May: Vodafone on track for revenue inflection in Q2 says Credit Suisse
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Vodafone – An Example
Let’s say you like the range, you think it’s heading back towards 140p again. You decide to buy exposure to £10,000 worth of Vodafone using a CFD, at the current price of 126p. To do this, you need £2,000.
Let’s assume Vodafone rises to 140p (+11.1%). Your profit would be £1110, 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. Vodafone 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.