AstraZeneca
A trading opportunity for you?
Will AstraZeneca break support, or will it rise again back to 6084p?
- AstraZeneca has rising support since February; horizontal support since late July
- Bounced of rising support 7 times; bounced off horizontal support 3 times
- Most recent bounce at 5560p. Now trading 5630p (at time of writing)
- Will the pattern repeat itself, bouncing up again towards 6084p?
- Shares -8.3% from 2018 highs; +23.6% from 2018 lows; +10.2% year-to date
- 10 Oct: AstraZeneca’s Q3 set for smooth sailing says Barclays
- Source: Bloomberg, FT, Reuters, DJ Newswires
Trading AstraZeneca– An Example
Let’s say you like the AstraZeneca trend, you think it’s heading back towards 6084p again. You decide to buy exposure to £10,000 worth of AstraZeneca using a CFD, at the current price of 5630p. To do this, you need £2,000.
Let’s assume AstraZeneca recovers back to 6084p (+8.0%). Your profit would be £800, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss 3% below the current price. AstraZeneca 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.