A range trading opportunity for you?
Will RBS break support, or will it rise again to 260p (+16%)?
- Another bounce off 211p support to trade 223p (at time of writing)
- Will the pattern repeat itself, rising back to recent highs of 260p (+16%)?
- Shares -18% from 2019 highs; +7% from 2019 lows; +3.2% year-to-date.
- 21 Jun: RBS bidding for Tesco mortgage book says Sky News
- 17 Jun: RBS expects capital boost from Saudi bank merger
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading RBS – An Example
Let’s say you like the RBS range, you think it’s heading back up to 260p again. You decide to buy exposure to £10,000 worth of RBS using a CFD, at the current price of 223p. To do this, you need £2,000.
Let’s assume RBS rises back to recent highs 260p (+16%). Your profit would be £1600, 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. RBS 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.