Victrex
A trading opportunity for you?
Will Victrex break support, or will it rise again back to 2766p?
- Victrex has a support level around 2386p since October 2017.
- Now trading at 2460p (at time of writing).
- Will the pattern repeat itself? Will the shares bounce off support again?
- Shares -30.5% from 2018 highs; now trading at 2018 lows; -7.1% year-to-date.
- Victrex is a specialty chemicals business.
- 25 July: Analysts at AJ Bell say the 3Q trading update has “the odd spot of weakness” but overall shows that the company remains at the top of its game.
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal, CMC Markets
Trading Victrex – An Example
Let’s say you like the Victrex chart and you think the price is heading back towards 2766p again. You decide to buy exposure to £10,000 worth of Victrex using a CFD, at the current price of 2460p. To do this, you need £2,000.
Let’s assume Victrex rises back to 2766p November highs (+12.4%). Your profit would be £1240, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Victrex 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.