A range trading opportunity for you?

Will Lloyds break higher, or will it fall back to 58.5p?

• Lloyds’ falling channel range has developed since January
• Bounced off falling highs trendline 5 times. Now trading 61.0p (at time of writing)
• Will the pattern repeat itself, testing previous lows?
• Shares -16.2% from 2018 highs; +4.4% from 2018 lows; +10.4% year-to-date
• Lloyds (20 Sept) ups investment in Emerging Markets, sees the region as undervalued
• Lloyds (12 Sept) to close further 15 branches by end-March 2019

Click to enlarge

Trading Lloyds – An Example

Let’s say you like the range, you think it’s heading back towards 58.5p again. You decide to sell exposure to £10,000 worth of Lloyds using a CFD, at the current price of 61p. To do this, you need £2,000.

Let’s assume Lloyds falls back to 58.5p (-4.0%). Your profit would be £400, 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. Lloyds rises 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.