Croda
A trading opportunity for you?
Will Croda break support, or will it rise again back to 5328p ?
- Croda has a support zone around 5000p.
- Bounced off here in early September and again today. Now trading 5002p (at time of writing)
- Will the pattern repeat itself, bouncing up again towards 5328p?
- Shares -5.7% from 2018 highs; +19.2% from 2018 lows; +13.1% year-to date
- Shares rebounded strongly after H1 results on July 25
- Source: Bloomberg, FT, Reuters, DJ Newswires
Trading Croda – An Example
Let’s say you like the range, you think it’s heading back towards 5328p again. You decide to buy exposure to £10,000 worth of Croda using a CFD, at the current price of 5002p. To do this, you need £2,000.
Let’s assume Croda recovers back to 5328p (+6.5%). Your profit would be £650, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss 3% below the current price. Croda 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.