Will Babcock break support, or will it rise again back to 576p?

• 481-576p range since Jan; Now 506p (at time of writing)
• Will the pattern repeat itself, rising back to 576p?
• Shares -12.4% from 2019 highs; +6.8% from 2019 lows; +3.2% year-to-date
• 3 Apr: Confirms Ruth Cairnie as Chairwoman from Rolls Royce
• Oil prices at multi-month highs.
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

Click to enlarge

Trading Babcock– An Example

Let’s say you like the range, you think it’s heading back towards 576p again. You decide to buy exposure to £10,000 worth of Babcock using a CFD, at the current price of 506p. To do this, you need £2,000.

Let’s assume Babcock recovers back to 576p (+13.8%). Your profit would be £1380, 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. Babcock falls 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.