A range trading opportunity for you?
Will Crest Nicholson break support, or will it rise again to 403p highs?
- Shallow rising support since mid-Mar; Last bounce at 353p
- Now trading 359p (at time of writing)
- Will the pattern repeat itself, rising back to recent 403p highs?
- Shares -12.3% from 2019 highs; +11.7% from 2019 lows; +9.8% year to date
- 11 Jun: Crest Nicholson sees fruits of its Labor says Liberum
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Crest Nicholson – An Example
Let’s say you like the Crest range, you think it’s heading back up to 403p again. You decide to buy exposure to £10,000 worth of Crest using a CFD, at the current price of 359p. To do this, you need £2,000.
Let’s assume Crest rises back to 403p (+12%). Your profit would be £1200, 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. Crest 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.