Will Drax break support, or will it rise again to 390p April highs?

• Rising support since late December, latest bounce at 364p
• Now trading 369p (at time of writing).
• Will the pattern repeat, the shares climbing back towards 390p?
• Shares -10.9% from 2019 highs; +7.0% from 2019 lows; +3% year-to-date.
• 26 Feb: Full-year results were in-line with expectations.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Drax – An Example

Let’s say you like the Drax  chart and you think the price is heading back towards 390p again. You decide to buy exposure to £10,000 worth of Drax  using a CFD, at the current price of 369p. To do this, you need £2,000.

Let’s assume Drax  rises back to 390p highs (+5.6%). Your profit would be £560, 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. Drax  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.