Babcock International
A trading opportunity for you?
Will Babcock International break support, or will it rise again to 575p February highs?
- 3 touches off rising support since end of March; +4.6% from recent lows
- Trading 530p (at time of writing).
- Will the pattern repeat itself, rising back to February highs of 575p?
- 1 Apr: Babcock Lines Up Rolls-Royce Director Ruth Cairnie as Chairwoman -Sky News
- 15 May: Babcock International: Not Intend to Make Any Impairment in Regard to DSG
- Shares -8.5% from 2019 highs; +11.6% from 2019 lows; +7.8% year-to-date.
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Babcock International – An Example
Let’s say you like the Babcock International support, you think it’s heading back up to 575p again. You decide to buy exposure to £10,000 worth of Babcock Internationalusing a CFD, at the current price of 530p. To do this, you need £2,000.
Let’s assume Babcock International rises back to February highs of 575p (+8.4%). Your profit would be £700, 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. Babcock International 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.