Bellway
A trading opportunity for you?
Will Bellway break support, or will it rise again back to 3232p highs?
- Support at 2773p since Jan; bounced 6 times
- Now trading 2805p (at time of writing)
- Will the pattern repeat itself, bouncing up again towards 3232p?
- Shares -13.2% from 2019 highs; +13.6% from 2019 lows; +11.5% year-to date
- 27 Mar: Bellway H1 pre-tax profit rose on back of higher revenue
- Source: Bloomberg, FT, Reuters, DJ Newswires
Trading Bellway – An Example
Let’s say you like the range, you think it’s heading back towards 3232p again. You decide to buy exposure to £10,000 worth of Bellway using a CFD, at the current price of 2805p. To do this, you need £2,000.
Let’s assume Bellway recovers back to 3232p (+15.2%). Your profit would be £1520, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss 3% from the current price. Bellway 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.