A trading opportunity for you?
Will Rolls Royce break support, or will it rise again to 927p?
- Shallow rising and horizontal support at 877p; multiple touches
- Trading 892p (at time of writing)
- Will the pattern repeat itself, rising back to recent highs of around 927p? (+3.9%)
- Shares -11.1% from 2019 highs; +13.2% from 2019 lows; +7.5% year-to-date.
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Rolls Royce – An Example
Let’s say you like the Rolls Royce support, you think it’s heading back up to 927p again. You decide to buy exposure to £10,000 worth of Rolls Royce using a CFD, at the current price of 892p. To do this, you need £2,000.
Let’s assume Rolls Royce rises back to highs of 927p (+3.9%). Your profit would be £390, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price. Rolls Royce falls 2% and hits your stop-loss. Your loss would be £200.
This is provided for information purposes only. It should not be taken as a recommendation.