A trading opportunity for you?
Will United Utilities break support, or will it rise again back to 792p?
- United Utilities has rising support zone since mid-October
- 3 bounces, most recently this week.
- Now trading 757p (at time of writing).
- Will the pattern repeat itself? Will the shares bounce off support again?
- Shares -8.9% from 2018 highs; +16.6% from 2018 lows; -8.7% year-to-date.
- United Utilities is Britain’s largest water and waster-water utility
- 21 Nov: Hargreaves Lansdown says UU keeps its appeal for income-seekers after upping dividend
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading United Utilities – An Example
Let’s say you like the United Utilities chart and you think the price is heading back towards 797p again. You decide to buy exposure to £10,000 worth of United Utilities using a CFD, at the current price of 756p. To do this, you need £2,000.
Let’s assume United Utilities rises back to 792p (+4.7%). Your profit would be £470, 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. United Utilities 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.