A trading opportunity for you?
Will Smiths Group break support, or will it rise again to 1605p?
- 3 touches off rising support since October.
- Will the pattern repeat itself, rising back to recent resistance of 1600p? (+6%)
- Shares -1.5% from 2019 highs; +9% from 2019 lows; -2% year-to-date.
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Smiths Group – An Example
Let’s say you like the Smiths Group support, you think it’s heading back up to 1600p. You decide to buy exposure to £10,000 worth of Royal Bank of Scotland using a CFD, at the current price of 1493p. To do this, you need £2,000.
Let’s assume Smiths Group rises back to 1600p (+6%). Your profit would be £600, from your initial investment of £700.
Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Smiths Group 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.