A range trading opportunity for you?

Will Barratts break support, or will it rise again back to 570p?

• The Barratts range has developed since late September.
• Bounced off 551p zone 3 times. Now trading 557p (at time of writing)
• Will the Barratts pattern repeat itself, testing previous highs?
• Shares -15.7% from 2018 highs; +16.4% from 2018 lows; -14.0% year-to-date
• Paying a dividend next week
• In early September UK Housebuilders began lobbying for an extension to the Help to Buy scheme.
• UK Nationwide House Prices better than expected yesterday.
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading Barratt Developments – An Example

Let’s say you like the range, you think it’s heading back towards 570p again. You decide to buy exposure to £10,000 worth of Barratts using a CFD, at the current price of 557.2p. To do this, you need £2,000.

Let’s assume Barratts recovers back to 570p (+2.3%). Your profit would be £230, 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. Barratts 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.