A range trading opportunity for you?

Will Inchcape break support, or will it rise again back to 698p?

• Range developed since mid-September.
• Bounced off 663p zone 3 times since mid-Sept (661p support since Feb). Now trading 669p (at time of writing)
• Will the pattern repeat itself, testing previous highs?
• Shares -18.8% from 2018 highs; +1.5% from 2018 lows; -14.5% 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 698p again. You decide to buy exposure to £10,000 worth of Inchcape using a CFD, at the current price of 669p. To do this, you need £2,000.

Let’s assume Inchcape recovers back to 698p (+4.3%). Your profit would be £430, 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. Inchcape 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.