Will BAE Systems turn, or will it continue to fall below 508p 28-month lows ?

• The chart shows BAE Systems price action since June 2016 Brexit-vote lows.
• Shares -23.2% from 2018 highs; +0.2% from 2018 lows; -11.24% year-to-date.
• Shares have fallen almost 20% in the last month. Will this momentum continue?
• 30 Oct: BAE and Rolls Royce weak after General Electric results missed expectations and it cut the dividend
• 24 Oct: Bernstein cuts target price based on delayed sales to Typhoon fighters, military vehicles and military ki
• US Army refocusing priorities meaning potentially lower Bradley armored fighting vehicle sales and slower armored multi-purpose vehicle sales
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading BAE Systems – An Example

Let’s say the trend appeals to you, you think it’s likely to continue. You decide to sell short exposure to £10,000 worth of BAE Systems using a CFD, at the current price of 508.7p. To do this, you need £2,000.

Let’s assume the BAE Systems trend continues to June 2016 lows of 464p (-8.8%). Your profit would be £880, 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. BAE Systems rises 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.