A range trading opportunity for you?

Will Inchcape break support, or will it rise again back to 801p?

• Range developed over last 9 months.
• Bounced off 661.5p zone 3 times since Jan. Now trading 682p (at time of writing)
• Shares trading up off 2018 lows
• Will the pattern repeat itself, testing previous highs?
• Shares -17.7% from 2018 highs; +2.95% from 2018 lows; -13.1% year-to-date
• On 26 July Inchcape said its core distribution business had a strong first-half performance, supported by a strong showing in Asia. It increased its interim dividend by 11%

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Trading Inchcape – An Example

Let’s say you like the range, you think it’s heading back towards 801p again. You decide to buy exposure to £10,000 worth of Inchcape using a CFD, at the current price of 682p. To do this, you need £2,000.

Let’s assume Inchcape recovers back to 801p. Your profit would be £1745, 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, at 648p. Inchcape 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.