Inchcape
A trading opportunity for you?
Will Inchcape break support, or will it rise again back to 800p ?
- Inchcape has formed a support level since March
- Bounced off 661.5p zone 4 times. Now trading 668.7p (at time of writing)
- Will the pattern repeat itself, bouncing up again towards 800p recent highs?
- Shares -18.8% from 2018 highs; +1.5% from 2018 lows; -14.5% year-to date
- On 26 July Inchcape said its core distribution business had a strong first-half performance, supported by a strong showing in Asia. It increased its interim dividend by 11%
Trading Inchcape – An Example
Let’s say you like the range, you think it’s heading back towards 800p again. You decide to buy exposure to £10,000 worth of Inchcape using a CFD, at the current price of 668.7p. To do this, you need £2,000.
Let’s assume Inchcape recovers back to 800p (+19.6%). Your profit would be £2200, 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. Inchcape 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.