A range trading opportunity for you?

Will GlaxoSmithKline break support, or will it rise again back to 1592p?

• Range developed over last 14 weeks.
• Bounced off 1480p zone 8 times in September. Now trading 1500p (at time of writing)
• Will the pattern repeat itself, testing previous highs?
• Shares -8.6% from 2018 highs; +20.2% from 2018 lows; +13.4% year-to-date
• Pharmaceuticals are often considered defensive/non-cyclical shares, less exposed to economic growth
• Glaxo has received several bids >$4bn for its Indian Consumer Health Business

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Trading GlaxoSmithKline – An Example

Let’s say you like the range, you think it’s heading back towards 1592p again. You decide to buy exposure to £10,000 worth of GlaxoSmithKline using a CFD, at the current price of 1500p. To do this, you need £2,000.

Let’s assume GlaxoSmithKline recovers back to 1592p (6.1%). Your profit would be £613, 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. GlaxoSmithKline 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.