Legal & General
A trading opportunity for you?
Will Legal & General break support, or will it rise again back to 280p ?
- Support developed over last 15 months.
- Bounced off 250p zone 4 times since June 2017. Now trading at 252p (at time of writing)
- Will the pattern repeat itself, bouncing up again towards 280p?
- Shares -12.3% from 2018 highs; +1.4% from 2018 lows; -7.7% year-to date
- Legal & General recently took over management of British Airways’ £4.4bn pension fund
Trading Legal & General – An Example
Let’s say you like the range, you think it’s heading back towards 280p again. You decide to buy exposure to £10,000 worth of Legal & General using a CFD, at the current price of 252p. To do this, you need £2,000.
Let’s assume Legal & General recovers back to 280p. Your profit would be £1,111, 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, at 244p. Legal & General 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.