Prudential
A trading opportunity for you?
Will Prudential break support, or will it rise again back to 1814p ?
- Prudential has shallow rising support since 10 Sept. Latest bounce at 1667p.
- Bounced off trendline 3 times. Now trading 1679p (at time of writing)
- Will the pattern repeat itself, bouncing up again towards 1814p?
- Shares -16.3% from 2018 highs; +0.6% from 2018 lows; -12.0% year-to date
- 1 Oct: Prudential appoints Mike Evans as new M&G Prudential Chairman
- Source: Bloomberg, FT, Reuters, DJ Newswires
Trading Prudential – An Example
Let’s say you like the range, you think it’s heading back towards 1814p again. You decide to buy exposure to £10,000 worth of Prudential using a CFD, at the current price of 1679p. To do this, you need £2,000.
Let’s assume Prudential recovers back to 1814p (+8.0%). Your profit would be £800, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss 3% below the current price. Prudential 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.