A range trading opportunity for you?

Will AstraZeneca break lower, or will it rise back again to 6,109p?

• The AstraZeneca range has developed since mid-July.
• Bounced off 5,536p support zone 9 times. Now trading 5,646p (at time of writing)
• Will the pattern repeat itself, testing previous highs?
• Shares -8.2% from 2018 highs; +23.6% from 2018 lows; +10.2% year-to-date
• Bounce from lower range boundary supported by recent regulatory approval of orphan drug status for company’s pancreatic cancer drug Lynparza.
• Orphan drug designation benefits the AstraZeneca by providing tax incentives for research into rare treatments.
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading AstraZeneca  – An Example

Let’s say you like the AstraZeneca  range, you think it’s heading back towards 6,109p again. You decide to buy exposure to £10,000 worth of AstraZeneca  using a CFD, at the current price of 5,646p. To do this, you need £2,000.

Let’s assume AstraZeneca  rises back to 6,109p (+8.2%). Your profit would be £820, 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. AstraZeneca 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.