A range trading opportunity for you?

Will National Grid break support, or will it rise again back to 837p?

• The range has developed over the last 2 months.
• It has bounced off a 789.5p zone 5 times since late July. It is now at 797.7p (at time of writing)
• Will the pattern repeat itself, testing previous highs?
• Shares trading up off their lowest in 5 months
• Shares -11.6% from May’s 2018 highs; +8% from February’s 2018 lows
• On 12 Sept peer Utility company SSE issued a profits warning

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Trading National Grid – An Example

Let’s say you like the range, you think it’s heading back towards 837p again. You decide to buy exposure to £10,000 worth of National Grid using a CFD, at the current price of 797.5p. To do this, you need £2,000.

Let’s assume National Grid recovers back to 837p. Your profit would be £492, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price, at 774p. National Grid 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.