A range trading opportunity for you?

Will Bodycote fall back to support, or will it rise again back to 1053p?

• Bodycote range has developed over last 7 months
• Bounced off 875p zone 10 times. Now trading 916p (at time of writing)
• Will the pattern repeat itself, testing previous highs?
• Shares -14.7% from 2018 highs; +6.3% from 2018 lows; +0.4% year-to-date
• On 26 July, Bodycote said H1 pretax profit +15%, and expects full-year profits marginally ahead of consensus.
• The company is a provider of heat-treatment and thermal-processing services

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Trading Bodycote  – An Example

Let’s say you like the range, you think it’s heading back towards 1053p again. You decide to buy exposure to £10,000 worth of Bodycote using a CFD, at the current price of 916p. To do this, you need £2,000.

Let’s assume Bodycote  recovers back to 1053p (15.0%). Your profit would be £1,496, 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. Bodycote  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.