BT
A trading opportunity for you?
Will BT break support, or will it rise again back to 251p highs?
- BT has rising support since the beginning of October, having bounced 3 times, most recently at 234p.
- Now trading 238p (at time of writing).
- Shares -13.6% from 2018 highs; +19.5% from 2018 lows; -12.3% year-to-date.
- 25 Oct: New CEO Jansen will take over from Patterson on 1 Feb.
- 15 Oct: Activist Greenlight Capital seeks BT split with Openreach (The Times)
- Source: Bloomberg, FT, Reuters, DJ Newswires
Click to enlarge
Trading BT – An Example
Let’s say you like the BT chart and you think the price is heading back towards 251p again. You decide to buy exposure to £10,000 worth of BT using a CFD, at the current price of 238p. To do this, you need £2,000.
Let’s assume BT rises back to 251p (+5.4%). Your profit would be £540, 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. BT 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.