3i
A trading opportunity for you?
Will 3i break support, or will it rise again back to 967p ?
- 3i has bounced off May 2017 support level at 845p
- Bounced 3 times, most recently bouncing off the support zone yesterday.
- Now trading 865p (at time of writing)
- 3i Group is private equity fund that invests in infrastructure and debt management projects around the globe.
- Recent rebound in equity markets could spur the 3i shares to bounce back from long-term support level.
- Will the pattern repeat itself, bouncing up again towards 967p recent highs?
- Shares -18.2% from 2018 highs; currently trading just off 2018 lows; -5.2% year-to date
- Source: Bloomberg, FT, Reuters, DJ Newswires
Trading 3i – An Example
Let’s say you like the 3i trend, you think it’s heading back towards 967p again. You decide to buy exposure to £10,000 worth of 3i using a CFD, at the current price of 865p. To do this, you need £2,000.
Let’s assume 3i recovers back to 967p (+11.7%). Your profit would be £1,170, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss 7% below the current price. 3i falls 7% and hits your stop-loss. Your loss would be £700.
This is provided for information purposes only. It should not be taken as a recommendation.