Lloyds
A trading opportunity for you?
Will Lloyds break support, or will it rise again back to 62p ?
- Lloyds has a support zone since mid-September.
- Bounced around 58.5p 4 times. Now trading at 58.99p (at time of writing)
- Will the pattern repeat itself, bouncing up again towards 62p?
- Shares -18.5% from 2018 highs; +1.4% from 2018 lows; -13.3% year-to date
- UK Banks have been dragged lower by Italian banks in reaction to Italian budget talks
- Source: Bloomberg, FT, Reuters, DJ Newswires
Trading Lloyds – An Example
Let’s say you like the range, you think it’s heading back towards 62p again. You decide to buy exposure to £10,000 worth of Lloyds using a CFD, at the current price of 59p. To do this, you need £2,000.
Let’s assume Lloyds recovers back to 62p (+5%). Your profit would be £508, 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. 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.