BAE Systems
A range trading opportunity for you?
Will BAE Systems break support, or will it rise again to 489p last week’s highs?
- Shares trading close to 460p support zone; 2 bounces in Feb-Mar.
- Trading 464p (at time of writing)
- Will the pattern repeat itself, rising back to 489p last week’s highs?
- Shares -12.3% from 2019 highs; +2.5% from 2019 lows; +1.1% year-to-date.
- 20 Mar: Won new contract from US DARPA defense agency.
- 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 up to 489p again. You decide to buy exposure to £10,000 worth of BAE Systems using a CFD, at the current price of 410p. To do this, you need £2,000.
Let’s assume BAE Systems rises back to 489p March highs (+19.2%). Your profit would be £1920, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. BAE Systems falls 5% and hits your stop-loss. Your loss would be £500.
This is provided for information purposes only. It should not be taken as a recommendation.