Rolls Royce
A trading opportunity for you?
Will Rolls Royce break support, or will it rise again to 940p?
- Shallow rising support at 882p; multiple touches
- Trading 890p (at time of writing)
- Will the pattern repeat itself, rising back to recent highs of around 940p?
- Shares -11.3% from 2019 highs; +12.9% from 2019 lows; +7.2% year-to-date.
- 2 May: Sees 2019 Underlying Op Profit and Cash Flow guidance in-line with views
- 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 940p again. You decide to buy exposure to £10,000 worth of Rolls Royce using a CFD, at the current price of 890p. To do this, you need £2,000.
Let’s assume Rolls Royce rises back to highs of 940p (+5.6%). Your profit would be £560, 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.