A range trading opportunity for you?

Will Provident Financial break support, or will it rise again back to 700p?

• The Provident range has developed since mid-June.
• Bounced off 579p zone 7 times. Now trading 590p (at time of writing)
• Will the Provident pattern repeat itself, testing previous highs?
• Shares -27% from 2018 highs; +42% from 2018 lows; -11% year-to-date
• 22 Aug: Berenberg says Provident Financial faces lower risk from regulation
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading Provident Financial – An Example

Let’s say you like the range, you think it’s heading back towards 700p again. You decide to buy exposure to £10,000 worth of Provident using a CFD, at the current price of 590p. To do this, you need £2,000.

Let’s assume Provident recovers back to 700p (+18.6%). Your profit would be £1860, 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. Provident 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.