A trading opportunity for you?
Will Rolls Royce break support, or will it rise again to 1006p?
- Rising support since Dec; Now trading 900p (at time of writing).
- Will the pattern repeat, the shares climbing back towards 1006p?
- Shares -10.3% from 2019 highs; +14.2% from 2019 lows; +8.5% year-to-date.
- 13 Mar: Gets Lufthansa Dreamliner deal, a boost for Trent 1000 engines
- 1 Mar: Vertical Research ups Rolls-Royce target price to £10
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Rolls Royce – An Example
Let’s say you like the Rolls Royce chart and you think the price is heading back towards 1006p again. You decide to buy exposure to £10,000 worth of Rolls Royce using a CFD, at the current price of 900p. To do this, you need £2,000.
Let’s assume Rolls Royce rises back to 1006p (+11.7%). Your profit would be £1170, 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. Rolls Royce 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.