A trading opportunity for you?
Will AstraZeneca break support, or will it rise again back to 6433p?
- AstraZeneca has rising support since February, latest bounce off 5748p.
- Bounced of rising support 7 times; most recently last week.
- Now trading 5899p (at time of writing)
- Will the pattern repeat itself, bouncing up again towards 6433p record highs?
- Shares -2.7% from 2019 highs; +3.1% from 2019 lows; flat year-to date
- 7 Jan: Appointed Jose Baselga, a prominent cancer doctor, to lead oncology R&D as part of a wider overhaul designed to get drugs to market faster.
- 4 Jan: UK’s regulator NICE approves AstraZeneca’s Fasenra asthma medication.
- 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 6433p again. You decide to buy exposure to £10,000 worth of AstraZeneca using a CFD, at the current price of 5899p. To do this, you need £2,000.
Let’s assume AstraZeneca recovers back to 6433p (+9%). Your profit would be £900, 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.