Inmarsat
A range trading opportunity for you?
Will Inmarsat break higher, or will it fall to 333p lows again?
- Falling range since August, hitting resistance 6 times.
- Now trading 380p (at time of writing).
- Will the pattern repeat itself, testing previous lows?
- Shares -39.9% from 2018 highs; +16.1% from 2018 lows; +0.2% year-to-date
- 14 Nov: CEO sees less need for satellite consolidation; struggling to explain transformation
- 8 Nov: Competition hits maritime division in 3Q, offsetting aviation strength
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Inmarsat – An Example
Let’s say you like the Inmarsat range, you think it’s heading back towards 333p again. You decide to sell exposure to £10,000 worth of Inmarsat using a CFD, at the current price of 380p. To do this, you need £2,000.
Let’s assume Inmarsat falls back to 333p (-12.3%). Your profit would be £1230, 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. Inmarsat rises 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.