Burberry
A trading opportunity for you?
Will Burberry break support, or will it rise again back to 2335p ?
- Support developed over last 5 weeks
- Bounced off 2060p zone 4 times since 2 Aug. Now trading at 2128p (at time of writing)
- Will the pattern repeat itself, bouncing up again towards 2335p?
- Shares -8.9% from 2018 highs; +43.8% from 2018 lows; +18.7% year-to date
- Shares under pressure recently from risk of US-China trade war impacting growth
Trading Burberry – An Example
Let’s say you like the range, you think it’s heading back towards 2335p again. You decide to buy exposure to £10,000 worth of Burberry using a CFD, at the current price of 2128p. To do this, you need £2,000.
Let’s assume Burberry recovers back to 2335p. Your profit would be £972, 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, at 2021p. Burberry 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.