Kier Group
A trading opportunity for you?
Will Kier break support, or will it rise again back to 1100p ?
- Kier Group has a support zone since mid-August.
- Bounced around 900p 6 times. Now trading at 924.25p (at time of writing)
- Will the pattern repeat itself, bouncing up again towards 1100p?
- Shares -21% from 2018 highs; +4% from 2018 lows; -15% year-to date
- 20 Sept: Liberum says Kier should receive a profit boost from streamlining
- 29 Aug: Numis says UK Construction sector recovery will reward investors
Trading Kier Group – An Example
Let’s say you like the range, you think it’s heading back towards 1100p again. You decide to buy exposure to £10,000 worth of Kier using a CFD, at the current price of 924p. To do this, you need £2,000.
Let’s assume Kier recovers back to 1100p (+19%). Your profit would be £1905, 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. Kier 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.