A trading opportunity for you?
Will BAE Systems break support, or will it rise again back to 502p December highs?
- BAE Systems has twin support: rising (to late Dec) and horizontal (to mid-Dec).
- Bounced 3 times off a rising support since late Dec, latest bounce off 461p yesterday.
- Bounced 3 times off 461p horizontal resistance-turned-support since mid-Dec.
- Now trading 472p (at time of writing).
- 2 Jan: BAE gets order for 194 electric-hybrid engine systems from Massachusetts Bay Transportation Authority.
- 18 Dec: BAE is one of two finalists for a Pentagon’s Mobile Fire Power program
- Shares -2.5% from 2019 highs; +2.8% from 2019 lows;+3.35% year-to-date.
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading BAE Systems – An Example
Let’s say you like the BAE Systems range, you think it’s heading back towards 502p again. You decide to buy exposure to £10,000 worth of BAE Systems using a CFD, at the current price of 472p. To do this, you need £2,000.
Let’s assume BAE Systems rises back to 502p (+6.3%). Your profit would be £630, 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. BAE Systems 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.