A range trading opportunity for you?

Will Prudential break lower, or will it rise back again to 1813p?

• The Prudential range has developed over the last month
• Bounced off 1658p zone 3 times, most recently today. Now trading 1677p (at time of writing)
• Will the pattern repeat itself, testing previous highs?
• Shares -16.5% from 2018 highs; +0.8% from 2018 lows; -12.0% year-to-date
• 1 Oct: Prudential appoints Mike Evans as M&G Prudential Chairman
• 28 Aug: UBS says Prudential, Aviva had Strong first half but L&G concerns linger
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading Prudential – An Example

Let’s say you like the range, you think it’s heading back towards 1813p again. You decide to buy exposure to £10,000 worth of Prudential using a CFD, at the current price of 1677p. To do this, you need £2,000.

Let’s assume Prudential rises back to 1813p (+8.1%). Your profit would be £810, 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. Prudential falls 3% and hits your stop-loss. Your loss would be £300.

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