Rentokil Initial
A trading opportunity for you?
Will Rentokil Initial break support, or will it rise again back to 355.15p ?
- The support has developed over the last 4 months.
- It has bounced off a 316p zone 7 times since early May. It is now at 318.2p (at time of writing)
- Will the pattern repeat itself, bouncing up again towards 355p?
- Shares trading close to their lowest since early May.
- Shares -10.3% from May’s 2018 highs; +24.2% from March’s 2018 lows
- Shares fell after results end-July but bounced back in August
Trading Rentokil Initial – An Example
Let’s say you like the range, you think it’s heading back towards 355.1p again. You decide to buy exposure to £10,000 worth of Rentokil Initial using a CFD, at the current price of 318.65p. To do this, you need £2,000.
Let’s assume Rentokil Initial recovers back to 355.15p. Your profit would be £1,145, 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, at 309p. Rentokil Initial 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.