Will Hiscox break lower, or will it rise back to 1723p highs again?

• Hiscox shares trade a range since September.
• Bounced off support zone 3 times, most recently today/yesterday.
• Now trading 1552p (at time of writing)
• Will the pattern repeat itself, testing previous highs?
• Shares -10.2% from 2018 highs; +20.9% from 2018 lows; -4.3% year-to-date
• 3 Jan: UBS says London market insurers better placed than European peers
• 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 1723p highs again. You decide to buy exposure to £10,000 worth of Hiscox using a CFD, at the current price of 1552p. To do this, you need £2,000.

Let’s assume Hiscox rise back to 1723p highs (+11%). Your profit would be £1100, 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.