Will Hiscox break lower, or will it rise back to 1700p highs again?

• Hiscox shares are trading in a narrowing range since late October.
• Bounced off rising support 3 times, most recently on today.
• Now trading 1540p (at time of writing)
• Will the pattern repeat itself, testing previous highs?
• Shares -11.4% from 2018 highs; +19.3% from 2018 lows; -6.5% year-to-date
• Hiscox recently promoted to UK 100
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Hiscox – An Example

Let’s say you like the range, you think it’s heading back towards 1700p highs again. You decide to buy exposure to £10,000 worth of Hiscox using a CFD, at the current price of 1540p. To do this, you need £2,000.

Let’s assume Hiscox rise back to 1700p highs (+10.4%). Your profit would be £1040, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Hiscox falls 5% and hits your stop-loss. Your loss would be £500.

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