Will CYBG turn, or will it continue to fall beyond 220p?

• The chart shows the historic (2.5yr) price action for CYBG
• The shares have broken below a support line at 250p to trade 222p (at time of writing).
• The ‘trend is your friend’. Will it continue?
• Will the shares fall back to May 2017 lows of 204p, or all-time lows of 179p?
• Shares -32.3% from 2018 highs; shares trading 2018 lows; -34.6% year-to-date.
• 20 Nov: FY18 results and 2019 outlook disappoint
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading CYBG– An Example

Let’s say the breakdown appeals to you, you think it’s likely to continue. You decide to sell exposure to £10,000 worth of CYBG using a CFD, at the current price of 222p. To do this, you need £2,000.

Let’s assume the CYBG trend continues downwards to 204p (-8.1%). Your profit would be £810, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. CYBG breaks rebound, rising 3% and it hits your stop-loss. Your loss would be £300.

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