A trading opportunity for you?
Will Lloyds break support, or will it rise again to 66p highs?
- 56.5p support since February; Breakout beyond falling highs
- Now trading 58.1p. (at time of writing)
- Will the pattern repeat itself, rising back to April highs of 66p?
- Shares at -13.0% from 2019 highs; +15.9% from 2019 lows; +12.1% year-to-date.
- 28 May: Davy say Lloyds could boost its share buyback; upgrades to Outperform
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Lloyds – An Example
Let’s say you like the Lloyds support, you think it’s heading back up to 66p. You decide to buy exposure to £10,000 worth of Lloyds using a CFD, at the current price of 58.2p. To do this, you need £2,000.
Let’s assume Lloyds rises back to 66p (+13.4%). Your profit would be £1340, from your initial investment of £2000.
Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Lloyds 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.