BT
A range trading opportunity for you?
Will BT break lower, or will it rise back again to 268p?
- BT has a channel range since mid-October; Bounced off support zone 3 times
- Now trading 234p (at time of writing)
- Will the pattern repeat itself, testing previous highs?
- Shares -16.5% from 2018 highs; +15.5% from 2018 lows; -1.9% year-to-date
- 7 Jan: The Mail on Sunday reports BT bringing in advisors to plan defence from Deutsche Telekom takeover
- 18 Dec: BT: Remuneration Committee will consider broader range of performance factors in setting pay
- 14 Dec: Ofcom launches review of UK broadband prices
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Click to enlarge
Trading BT – An Example
Let’s say you like the range, you think it’s heading back towards 268p again. You decide to buy exposure to £10,000 worth of BT using a CFD, at the current price of 234p. To do this, you need £2,000.
Let’s assume BT rises back to 268p (+14.5%). Your profit would be £1450, 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. BT 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.