Will National Grid  break support, or will it rise again back to highs of 865p?

• National Grid has support since late October with 2 bounces so far.
• Now trading 823p (at time of writing).
• Will the pattern repeat, the shares climbing back towards 865p?
• Shares -7.7% from 2018 highs; +12.7% from 2018 lows; -5.8% year-to-date.
• 8 Nov: National Grid on track to meet asset growth at top end of 5%-7% range
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading National Grid – An Example

Let’s say you like the National Grid chart and you think the price is heading back towards 865p again. You decide to buy exposure to £10,000 worth of National Grid  using a CFD, at the current price of 823p. To do this, you need £2,000.

Let’s assume National Grid rises back to 865p (+5.1%). Your profit would be £510, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price. National Grid falls 2% and hits your stop-loss. Your loss would be £200.

This is provided for information purposes only. It should not be taken as a recommendation.