Will Rolls-Royce continue falling, or will it recover last week’s highs of 990p?

• Rolls-Royce shares -4.5% today, trading a 7.5% range.
• Engine marker’s profit beat market consensus.
• However, it booked exceptional charges on Trent 1000 engine issues.
• Now trades 930p (at time of writing).
• Shares -7.4% from 2019 highs; +18% from 2019 lows; +13.4% year-to-date.
• Can the stock recover to recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Rolls-Royce – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards 990p. You decide to buy exposure to £10,000 worth of Rolls-Royce using a CFD, at the current price of 930p. To do this, you need £2,000.

Let’s assume Rolls-Royce  recovers back to last week’s highs of 990p (+6.45%). Your profit would be £645, 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. Rolls-Royce 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.