Barclays
A trading opportunity for you?
Will Barclays break support, or will it rise again back to 196p ?
- Barclays has support since mid-September.
- Bounced 6 times from 169p zone. Now trading at 175p (at time of writing)
- Will the pattern repeat itself, bouncing up again towards 196p?
- Shares -20.8% from 2018 highs; +3.5% from 2018 lows; -13.9% year-to date
- Banks shares have been benefiting from higher bond yields
- 1 Oct: Berenberg says Barclays is underestimated by Investors; upgrades to Buy, raises target to 220p,
- Source: Bloomberg, FT, Reuters, DJ Newswires
Trading Barclays – An Example
Let’s say you like the range, you think it’s heading back towards 196p again. You decide to buy exposure to £10,000 worth of Barclays using a CFD, at the current price of 175p. To do this, you need £2,000.
Let’s assume Barclays recovers back to 196p (+12%). Your profit would be £1200, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss 5% below the current price. Barclays 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.