GlaxoSmithKline
A range trading opportunity for you?
Will GSK bounce off 7 week rising support at 1640p?
- Shares trading back towards 7 week rising support; Now trading 1650p (at time of writing)
- Will the pattern repeat itself, bouncing back and breaking through 2019 highs of 1672p? (+2%)
- Shares -2% from 2019 highs; +13.6% from 2019 lows; +8.9% year-to-date.
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading GlaxoSmithKline – An Example
Let’s say you like the GlaxoSmithKline range, you think it’s heading back to test 2019 highs of 1672p again. You decide to buy exposure to £10,000 worth of GlaxoSmithKline using a CFD, at the current price of 1650p. To do this, you need £2,000.
Let’s assume GlaxoSmithKline rises back to 2019 highs again (2%). Your profit would be £200, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price. GlaxoSmithKline rises 2% and hits your stop-loss. Your loss would be £200.
This is provided for information purposes only. It should not be taken as a recommendation.