Will RSA Insurance break support, or will it rise back to 576p? (+5.3%)

• 545-576p rising range; Now 547p (at time of writing)
• Will the pattern repeat itself, rising back to 576p?
• Shares -3.9% from 2019 highs; +9.8% from 2019 lows; +6.7% year-to-date.
• 9 May: Q1 Net written premiums +3%, loss ratio improved
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading RSA Insurance – 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 RSA Insurance using a CFD, at the current price of 547p. To do this, you need £2,000.

Let’s assume RSA Insurance rises to 576 (+5.3%). Your profit would be £530, 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. RSA Insurance falls 3% and hits your stop-loss. Your loss would be £300.

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