A trading opportunity for you?
Will Derwent London break support, or will it rise again back to 3147p highs?
- Derwent London has rising support since November 2017
- The share shave bounced 4 times, most recently at 2790p
- Now trading 2854p (at time of writing).
- Will the pattern repeat itself, with the shares bouncing off support again?
- Shares -12.3% from 2018 highs; +3.8% from 2018 lows; +0..1% year-to-date.
- 23 Nov: Jefferies says it’s business as usual at after management changes (CEO to become Chairman)
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Derwent London – An Example
Let’s say you like the Derwent London chart and you think the price is heading back towards 3147p again. You decide to buy exposure to £10,000 worth of Derwent London using a CFD, at the current price of 2854p. To do this, you need £2,000.
Let’s assume Derwent London rises back to 3147p highs (+10.2%). Your profit would be £1020, 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. Derwent London 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.