A range trading opportunity for you?

Will Hammerson break lower, or will it rise back again to 561p?

• The Hammerson range has developed since March.
• Bounced off 430p support zone 4 times. Now trading 444p (at time of writing).
• In early October, the property company sold a 50% stake in a shopping centre in Leicester for £236m.
• Recent £300m buyback programme has been positive for the shares, with potential for more returns to shareholders in the future.
• Will the pattern repeat itself, testing previous highs?
• Shares -23.6% from 2018 highs; +3% from 2018 lows; -18.7% year-to-date
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading Hammerson – An Example

Let’s say you like the Hammerson range, you think it’s heading back towards 561p again. You decide to buy exposure to £10,000 worth of Hammerson using a CFD, at the current price of 444p. To do this, you need £2,000.

Let’s assume Hammerson rises back to 561p (+26.3%). Your profit would be £2,630, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 10% from the current price. Hammerson falls 10% and hits your stop-loss. Your loss would be £1,000.

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