A range trading opportunity for you?
Will Hargreaves Lansdown break support, or will it rise again to 2400p?
- Shares -25% from April highs
- Bounce off 1826p support to trade 1876p (at time of writing)
- Will the pattern repeat itself, rising back to recent highs of 2400p?
- Shares -23.5% from 2019 highs; +15.3% from 2019 lows; +1.3% year-to-date.
- Shares hit recently by exposure to Woodford Fund woes
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Hargreaves Lansdown – An Example
Let’s say you like the Hargreaves Lansdown range, you think it’s heading back up to 2400p again. You decide to buy exposure to £10,000 worth of Hargreaves Lansdown using a CFD, at the current price of 1876p. To do this, you need £2,000.
Let’s assume Hargreaves Lansdown rises back to recent highs 2400p (+27%). Your profit would be £2700, 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. Hargreaves Lansdown 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.