Prudential
A range trading opportunity for you?
Will Prudential break support, or will it rise back to April 1789p highs?
- Rising support since Christmas lows; down 8.5% from Apr highs
- Now trading 1648p (at time of writing)
- Will the pattern repeat itself, rising back to recent 1789p highs?
- Shares -7.7% from 2019 highs; +23.7% from 2019 lows; +17.8% year to date
- 29 Apr: Aviva among best to gain on lower life expectancy says Jefferies
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Prudential – An Example
Let’s say you like the Prudential range, you think it’s heading back up to 1789p again. You decide to buy exposure to £10,000 worth of Prudential using a CFD, at the current price of 1648p. To do this, you need £2,000.
Let’s assume Prudential rises back to 1789p (+8.5%). Your profit would be £850, 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. 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.