A range trading opportunity for you?

Will InterContinental Hotels break lower, or will it rise back again to 4,995p?

• The InterContinental Hotels range has developed since November 2017.
• Bounced off 4,155p support zone 4 times. Now trading 4,211p (at time of writing).
• Will the pattern repeat itself, testing previous highs?
• Hotels group added 3 new brands within the last year and is looking to capture more customers in US and China.
• Shares -16.9% from 2018 highs; +1.5% from 2018 lows; +10.5% year-to-date
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading InterContinental Hotels – An Example

Let’s say you like the InterContinental Hotels range, you think it’s heading back towards 4,995p again. You decide to buy exposure to £10,000 worth of InterContinental Hotels using a CFD, at the current price of 4,211p. To do this, you need £2,000.

Let’s assume InterContinental Hotels rises back to 4,995p (+18.6%). Your profit would be £1,860, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 9% from the current price. InterContinental Hotels falls 9% and hits your stop-loss. Your loss would be £900.

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