BT
Is this breakout a good trade for you?
Will BT turn, or will it continue to rise beyond 233p?
- The chart shows the last 6 weeks’ price action for BT
- The shares have broken above a resistance level at 231.7p to trade 233.95p (at time of writing).
- The ‘trend is your friend’. Will it continue?
- Will the shares rally back to recent 241.5p highs ?
- Shares -17.4% from 2018 highs; +14.3% from 2018 lows; -13.9% year-to-date.
- 24 Sept: BT in talks to make Philip Jansen new CEO when he leaves Worldpay
- Source: Bloomberg, FT, Reuters, DJ Newswires
Click to enlarge
Trading BT – An Example
Let’s say the breakout appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of BT using a CFD, at the current price of 233.95p. To do this, you need £2,000.
Let’s assume the BT trend continues upwards to 241.5p (+3.2%). Your profit would be £320, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. BT breaks down, falling 3% and it hits your stop-loss. Your loss would be £300.
This is provided for information purposes only. It should not be taken as a recommendation.