A range trading opportunity for you?

Will Ashtead break support, or will it rise again back to 2441p?

• The Ashtead range has developed over the last 3 months
• Bounced off 2174p zone 3 times. Now trading 2185p (at time of writing)
• Will the pattern repeat itself, testing previous 2441p highs?
• Shares -11.4% from 2018 highs; +16.8% from 2018 lows; +9.4% year-to-date
• 11 Sept: Ashtead 1Q results strong, helps sector peers
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading Ashtead – An Example

Let’s say you like the range, you think it’s heading back towards 2441p again. You decide to buy exposure to £10,000 worth of Ashtead using a CFD, at the current price of 2180p. To do this, you need £2,000.

Let’s assume Ashtead recovers back to 2441p (+11.7%). Your profit would be £1170, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price. Ashtead falls 4% and hits your stop-loss. Your loss would be £400.

This is provided for information purposes only. It should not be taken as a recommendation.