InterContinental Hotels
A trading opportunity for you?
Will InterContinental Hotels break support, or will it rise again back to 5,000p ?
- InterContinental Hotels has bounced off Nov 2017 support zone around 4,180p
- Bounced 3 times, most recently bouncing off the support zone today.
- Now trading 4,183p (at time of writing)
- Brokerage Raymond James recently commented (3 Sep) that strong industry fundamentals should continue to drive positive earnings momentum for the hotels group.
- Will the pattern repeat itself, bouncing up again towards 5,000p recent highs?
- Shares -16% from 2018 highs; +1.9% off 2018 lows; -11.3% year-to date
- Source: Bloomberg, FT, Reuters, DJ Newswires
Trading InterContinental Hotels – An Example
Let’s say you like the InterContinental Hotels trend, you think it’s heading back towards 5,000p again. You decide to buy exposure to £10,000 worth of InterContinental Hotels using a CFD, at the current price of 4,183p. To do this, you need £2,000.
Let’s assume InterContinental Hotels recovers back to 5,000p (+19.5%). Your profit would be £1,950, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss 10% below the current price. InterContinental Hotels falls 10% and hits your stop-loss. Your loss would be £1,000.
This is provided for information purposes only. It should not be taken as a recommendation.