A trading opportunity for you?
Will National Grid break support, or will it rise again back to highs of 850p?
- National Grid has support since April with 4 bounces.
- Now trading 753p (at time of writing).
- Will the pattern repeat, the shares climbing back towards 850p?
- Shares -14.6% from 2018 highs; +4.3% from 2018 lows; -13.9% year-to-date.
- 18 Dec: National Grid hits out at regulator’s proposed limit on shareholder returns
- 8 Nov: National Grid on track to meet asset growth at top end of 5%-7% range
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading National Grid – An Example
Let’s say you like the National Grid chart and you think the price is heading back towards 850p again. You decide to buy exposure to £10,000 worth of National Grid using a CFD, at the current price of 753p. To do this, you need £2,000.
Let’s assume National Grid rises back to 850p (+12.9%). Your profit would be £1290, 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. National Grid 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.