A trading opportunity for you?
Will BT break support, or will it rise again to 267p?
- Uptrend since May and 221p support since September
- Now trading 229p (at time of writing).
- Will the pattern repeat, the shares climbing back towards 267p?
- Shares -17.8% from 2018 highs; +13.7% from 2018 lows; -3.6% year-to-date.
- 4 Feb: BT outlook is too cautious, says Numis
- 31 Jan: BT Q3 results beats expectations, recovery on track
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading BT – An Example
Let’s say you like the BT chart and you think the price is heading back towards 267p again. You decide to buy exposure to £10,000 worth of BT using a CFD, at the current price of 229p. To do this, you need £2,000.
Let’s assume BT rises back to 267p Oct/Nov highs (+16.5%). Your profit would be £1650, 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. BT 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.