Redrow
A trading opportunity for you?
Will Redrow break support, or will it rise again back to highs of 571p?
- Redrow has support since late-October, 3 bounces off support zone, most recently today.
- Now trading 501.5p (at time of writing).
- Will the pattern repeat, the shares climbing back towards 571p?
- Shares -24.3% from 2018 highs; +1.5% from 2018 lows; -23.5% year-to-date.
- 7 Nov: Redrow average selling price +4.6% since 1 July; order book +11% to £1.2bn
- Source: Bloomberg, FT, Reuters, DJ Newswires
Trading Redrow – An Example
Let’s say you like the Redrow chart and you think the price is heading back towards 571p again. You decide to buy exposure to £10,000 worth of Redrow using a CFD, at the current price of 501p. To do this, you need £2,000.
Let’s assume Redrow rises back to 571p (+14%). Your profit would be £1400, 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. Redrow 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.