AstraZeneca
A trading opportunity for you?
Will AstraZeneca break support, or will it rise again back to 6100p ?
- Support level since late July (7 weeks)
- Bounced off 5532p zone 9 times in late July. Now trading at 5566p (at time of writing)
- Will the pattern repeat itself, bouncing up again towards 6100p?
- Shares -8.5% from 2018 highs; +23.2% from 2018 lows; +8.7% year-to date
- Pharmaceuticals often considered defensive (non-cyclical) markets economic growth slows
Trading AstraZeneca – An Example
Let’s say you like the range, you think it’s heading back towards 6100p again. You decide to buy exposure to £10,000 worth of AstraZeneca using a CFD, at the current price of 5566p. To do this, you need £2,000.
Let’s assume AstraZeneca recovers back to 6100p. Your profit would be £959, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price, at 5454p. AstraZeneca falls 2% and hits your stop-loss. Your loss would be £200.
This is provided for information purposes only. It should not be taken as a recommendation.