A trading opportunity for you?
Will Saga break support, or will it rise again back to 140p October highs?
- Saga has a shallow rising support zone since April, bouncing 3 times.
- Latest bounce off 109p last week.
- Now trading 113.2p (at time of writing).
- Shares -20.5% from 2018 highs; +3.9% from 2018 lows; -9.8% year-to-date.
- Will the pattern repeat itself, with the shares bouncing off support again?
- 27 Sept: Tour operator and insurer said H1 pre-tax profit +3.2% and trading matched expectations.
- Source: Bloomberg, FT, Reuters, DJ Newswires
Trading Saga – An Example
Let’s say you like the Saga chart and you think the price is heading back towards 140p again. You decide to buy exposure to £10,000 worth of Saga using a CFD, at the current price of 113.2p. To do this, you need £2,000.
Let’s assume Saga rises back to 140p (+23.6%). Your profit would be £2360, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 9% from the current price. Saga falls 9% and hits your stop-loss. Your loss would be £900.
This is provided for information purposes only. It should not be taken as a recommendation.