A trading opportunity for you?
Will BT continue falling, or will it rise again back to recent 268p highs?
- BT share price –14% from late November highs of 268p
- Now trading at 233p (at the time of writing).
- Shares -16.1% from 2018 highs; +16% from 2018 lows, -2.1% year-to-date.
- Helped by multiple rising support, can the shares regain recent highs?
- 7 Jan: The Mail on Sunday reports BT bringing in advisors to plan defence from Deutsche Telekom takeover
- 18 Dec: BT: Remuneration Committee will consider broader range of performance factors in setting pay
- 14 Dec: Ofcom launches review of UK broadband prices
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading BT – An Example
Let’s say you feel that the stock is a bargain and you think could bounce back towards 268p. You decide to buy exposure to £10,000 worth of BT using a CFD, at the current price of 233p. To do this, you need £2,000.
Let’s assume BT recovers back to this week’s highs of 268p (+15%). Your profit would be £1500, 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. BT 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.