United Utilities
A trading opportunity for you?
Will United Utilities break support, or will it rise again back to 800p ?
- Support level since early April
- Bounced off 693p zone 3 times since April. Now trading 706.2p (at time of writing)
- Will the pattern repeat itself, bouncing up again towards 800p May highs?
- Shares -15.8% from 2018 highs; +7.8% from 2018 lows; -14.9% year-to date
- Utilities often considered defensive/non-cyclical shares, less exposed to an economic downturn
Trading United Utilities – An Example
Let’s say you like the range, you think it’s heading back towards 800p again. You decide to buy exposure to £10,000 worth of United Utilities using a CFD, at the current price of 706.2p. To do this, you need £2,000.
Let’s assume United Utilities recovers back to 800p (+13.3%). Your profit would be £1,330, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss 5% below the current price. United Utilities falls 5% and hits your stop-loss. Your loss would be £500.
This is provided for information purposes only. It should not be taken as a recommendation.