BAE Systems
A trading opportunity for you?
Will BAE Systems break support, or will it rise again back to 679p July highs?
- BAE Systems has bounced 5 times off a support zone since December 2017, latest bounce off 535p today.
- Now trading 539p (at time of writing).
- Shares recently falling due to US-Saudi diplomatic confrontation, with BAE Systems defence orders potentially threatened.
- Resolution of the confrontation could help the shares bounce off support once more.
- Shares -20.6% from 2018 highs; now trading at 2018 lows; -5.85% year-to-date.
- Source: Bloomberg, FT, Reuters, DJ Newswires
Trading BAE Systems – An Example
Let’s say you like the BAE Systems range, you think it’s heading back towards 679p again. You decide to buy exposure to £10,000 worth of BAE Systems using a CFD, at the current price of 539p. To do this, you need £2,000.
Let’s assume BAE Systems rises back to 679p (+26%). Your profit would be £2,600, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 9% from the current price. BAE Systems falls 9% and hits your stop-loss. Your loss would be £900.
This is provided for information purposes only. It should not be taken as a recommendation.