Will National Grid break resistance, or will it fall back to 735p?

• Falling range channel since mid-May.
• Fallen from resistance 4 times. Now 839p (at time of writing)
• Will the pattern repeat itself, shares testing prior 735p lows?
• Shares -1.8% from 2019 highs; +13% from 2019 lows; +9.7% year-to-date
• 18 Feb: Upbeat sentiment on trade optimism could dent interest in defensive utilities.
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading National Grid – An Example

Let’s say you like the National Grid range, you think it’s heading back down to 735p again. You decide to sell exposure to £10,000 worth of National Grid using a CFD, at the current price of 735p. To do this, you need £2,000.

Let’s assume National Grid falls back to 735p (-12.4%). Your profit would be £1240, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price. National Grid rises 4% and hits your stop-loss. Your loss would be £400.

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