ITV
A range trading opportunity for you?
Will ITV break lower, or will it rise back again to 162p?
- The ITV range has developed since September.
- Bounced off 151p support zone 7 times. Now trading 152p (at time of writing).
- Will the pattern repeat itself, testing previous highs?
- According to analysts at Citigroup (3 Oct), ITV’s decision not to bid for Endemol Shine Group is positive, as it means the UK broadcaster won’t have to issue shares.
- Shares -15.7% from 2018 highs; +9.4% from 2018 lows; -8% year-to-date
- Source: Bloomberg, FT, Reuters, DJ Newswires
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Trading ITV – An Example
Let’s say you like the ITV range, you think it’s heading back towards 162p again. You decide to buy exposure to £10,000 worth of ITV using a CFD, at the current price of 152p. To do this, you need £2,000.
Let’s assume ITV rises back to 162p (+6.5%). Your profit would be £650, 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. ITV 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.