A range trading opportunity for you?
Will Renishaw break support, or will it rise again to 4900p range ceiling?
- Rising support with multiple bounces since October.
- Latest bounce yesterday off 4015p.
- Now trades 4109p (at time of writing)
- Will the pattern repeat itself, rising back to 4900p range ceiling?
- Shares -13% from 2019 highs; +6.5% from 2019 lows; -3% year to date
- 31 Jan: Precision measurement company said FY revenue will beat last year.
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Renishaw – An Example
Let’s say you like the Renishaw range, you think it’s heading back up to 4900p again. You decide to buy exposure to £10,000 worth of Renishaw using a CFD, at the current price of 4109p. To do this, you need £2,000.
Let’s assume Renishaw rises back to 4900p (+19.2%). Your profit would be £1920, 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. Renishaw 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.