Melrose reports results on Tues, 13 November

• The chart shows the price movement last time Melrose reported: H1 Results, 6 September.
• Shares opened +4.3p (+1.9%), traded as low as +0.7p (+0.3%), and as high as +14.3p (+6.4%).
• The shares closed +7.3p (+3.3%) for a daily range of 13.6p or 6.1%.
• Shares -29.4% from 2018 highs; +17.4% from 2018 lows; -17.7% year-to-date.
• Recent share price range: Oct lows 149.5p; Aug highs 238.5p. Currently 174p (at time of writing).
• Melrose publishes Q3 Trading Update on Tues, 13 Nov.
• Will we see another big move?
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading Melrose – An Example

Let’s say you think that Melrose results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of Melrose using CFDs, at the current price of 174p. To do this, you need £2,000.

For the purpose of this example, let’s assume Melrose reports strong results and the shares rise 10%. Your profit would be £1,000, from your initial investment of £2,000.

Conversely, let’s assume you open the position, and place a stop-loss 3% below the current price. Melrose results miss, it falls 3% and hits your stop-loss. Your loss would be £300.

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