Will Beazley turn, or will it continue to fall towards 484p?

• Breakdown below 516p to trade 512p  (at time of writing).
• The ‘trend is your friend’. Will it continue down towards 484p?
• Shares -11.6% from 2019 highs; +5.3% from 2019 lows; +1.7% year-to-date.
• 21 Mar: Financials lower on risk of hard Brexit
• 7 Feb: Beazley profits fall on catastrophe losses, low returns
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Beazley – An Example

Let’s say the breakdown appeals to you, you think it’s likely to continue to 484p . You decide to sell exposure to £10,000 worth of Beazley using a CFD, at the current price 512p (at time of writing). To do this, you need £2,000.

Let’s assume the Beazley trend continues down towards 484p (-5.4%). Your profit would be £540, 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. Beazley breaks higher, rising 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.