Vodafone
Is this breakout a good trade for you?
Will Vodafone turn, or will it continue to rise towards 140p?
- Breakout above 128p; Now trading 130p (at time of writing).
- Could they recover to their channel ceiling highs of 140p
- Shares -18.1% from 2019 highs; +6.4% from 2019 lows; -15% year-to-date
- 29 May: UBS says investors betting on TPG-Vodafone win in Australia
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
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Trading Vodafone – An Example
Let’s say the breakout appeals to you, you think it’s likely to continue towards 140p. You decide to buy exposure to £10,000 worth of Vodafone using a CFD, at the current price of 130p. To do this, you need £2,000.
Let’s assume the Vodafone trend continues to highs of 140p (+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. Vodafone 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.