Will BAE Systems turn, or will it continue to rise towards 520p?

• Breakout above 478p; Now trading 483p (at time of writing).
• Could they recover to prior highs of 520p?
• Shares -8.8% from 2019 highs; +9.5% from 2019 lows; +5.3% year-to-date
• 13 March: BAE’s AMPV will still deliver despite US defense cuts, says Jefferies
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading BAE Systems – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue towards 520p. You decide to buy exposure to £10,000 worth of BAE Systems using a CFD, at the current price of 483p. To do this, you need £2,000.

Let’s assume the BAE Systemstrend continues to highs of 520p (+7.6%). Your profit would be £760, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. BAE Systems breaks lower, falling 3% and it hits your stop-loss. Your loss would be £300.

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