Close Brothers
A trading opportunity for you?
Will Close Brothers break support, or will it rise again back to 1560p November highs?
- Close Brothers trades close to a support zone around 1414p since mid-November.
- Now trading at 1444p (at time of writing)
- Will the pattern repeat itself, bouncing up again towards 1560p November highs?
- Shares -13.4% from 2018 highs; +4.7% from 2018 lows; flat year-to-date
- Close Brothers is a UK-focused investment bank and lender.
- 15 Nov: Reported solid Q1 lending, though trading was more volatile.
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Close Brothers – An Example
Let’s say you like the range, you think it’s heading back towards 1560p again. You decide to buy exposure to £10,000 worth of Diploma using a CFD, at the current price of 1444p. To do this, you need £2,000.
Let’s assume Close Brothers recovers back to 1560p November highs (+8%). Your profit would be £800, 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. Close Brothers 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.