A range trading opportunity for you?
Will Aviva break late May rising support, or will it rise again to July highs of 435p? (+4%)
- Shares back at 7 week lows; Now trading 419p (at time of writing)
- Bounced of rising support 3 times since 28th May
- Will the pattern repeat itself, rising back to 435p early July highs?
- Shares -5.64% from 2019 highs; +12.09% from 2019 lows; +12% year-to-date.
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Aviva – An Example
Let’s say you like the Aviva range, you think it’s heading back up to 435p again. You decide to buy exposure to £10,000 worth of Aviva using a CFD, at the current price of 419p. To do this, you need £2,000.
Let’s assume Aviva rises back to 435p early July highs (+4%). Your profit would be £400, 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. Aviva 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.