A trading opportunity for you?

Will Balfour Beatty break support, or will it rise again back to 300p ?

• Balfour Beatty has formed a support level since late June
• Bounced off 277p zone 6 times. Now trading 278.6p (at time of writing)
• Will the pattern repeat itself, bouncing up again towards 300p recent highs?
• Shares -12.5% from 2018 highs; +8.1% from 2018 lows; -6.0% year-to date
• 29 Aug: Numis says UK Construction sector recovery will reward investors
• 17 Aug: Liberum says Balfour Beatty shareholder returns ‘On the Agenda’
• Shares pay a 1.6p/0.6% dividend on 4 Oct.

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Trading Balfour Beatty – An Example

Let’s say you like the range, you think it’s heading back towards 300p again. You decide to buy exposure to £10,000 worth of Balfour Beatty using a CFD, at the current price of 279p. To do this, you need £2,000.

Let’s assume Balfour Beatty recovers back to 800p (+7.5%). Your profit would be £750, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price. Balfour Beatty falls 2% and hits your stop-loss. Your loss would be £200.

This is provided for information purposes only. It should not be taken as a recommendation.