Cobham
A trading opportunity for you?
Will Cobham break support, or will it rise again back to 132.8p ?
- The support has developed over the last 4 months.
- It has bounced off a 116p zone 4 times since late April. It is now at 118.8p (at time of writing)
- Will the pattern repeat itself, bouncing up again towards 132.8p?
- Shares trading close to their lowest since late April
- Shares -13.1% from June’s 2018 highs; +8.1% from April’s 2018 lows
- Shares recently (11 Sept) upgraded by Vertical Research saying the outlook for US defence market remains robust.
Trading Cobham – An Example
Let’s say you like the range, you think it’s heading back towards 132.8p again. You decide to buy exposure to £10,000 worth of Cobham using a CFD, at the current price of 118.9p. To do this, you need £2,000.
Let’s assume Cobham recovers back to 132.8p. Your profit would be £1,170, 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, at 115.2p. Cobham 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.