Will BAE Systems turn, or will it continue to rise towards 543p November highs?

• BAE Systems shares +14% since Christmas.
• Shares trading close to 2019 highs; +12.5% from 2019 lows; +12% year-to-date.
• Now trading at 514p (at the time of writing)
• 21 Jan: Created a 45/55 JV with Germany’s Rheinmetall to make combat vehicles.
• Will the strong positive momentum continue?
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading BAE Systems – An Example

Let’s say the trend appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of BAE Systems using a CFD, at the current price of 514p. To do this, you need £2,000.

Let’s assume the BAE Systems trend continues to 543p November highs (+5.6%). Your profit would be £560, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price. BAE Systems falls 2% and hits your stop-loss. Your loss would be £200.

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