Will Standard Life Aberdeen turn, or will it continue to fall to 2011 lows of 226p?

• The chart shows the Standard Life Aberdeen price action since late November.
• Shares in a multi-month downtrend; now at 239p.
• Negative momentum started when Lloyds Banking stripped Standard Life Aberdeen of its contract to manage £109bn Scottish Widows pensions scheme.
• Shares -46.5% from 2018 highs; now trading near 2018 lows; -45.3% year-to-date
• In the last week, the shares have fallen close to 12%.
• Will this negative momentum continue?
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Standard Life Aberdeen – An Example

Let’s say the trend appeals to you, you think it’s likely to continue. You decide to sell exposure to £10,000 worth of Standard Life Aberdeen using a CFD, at the current price of 239p. To do this, you need £2,000.

Let’s assume Standard Life Aberdeen trend continues to 2011 low of 226p (-5.4%). Your profit would be £540, 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. Standard Life Aberdeen rises 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.