Ashtead
A range trading opportunity for you?
Will Ashtead break lower, or will it rise back again to 2350p?
- Rising range since December; Now trading 1933p (at time of writing)
- Will the pattern repeat itself, rising to the ceiling at 2350p?
- Shares -12.6% from 2019 highs; +22% from 2019 lows; +18.2% year-to-date.
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Click to enlarge
Trading Ashtead – An Example
Let’s say you like the range, you think it’s heading towards 2350p. You decide to buy exposure to £10,000 worth of Ashtead using a CFD, at the current price of 1933p. To do this, you need £2,000.
Let’s assume Ashtead rises to 2350p (+21%). Your profit would be £2100, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Ashtead falls 5% and hits your stop-loss. Your loss would be £500.
This is provided for information purposes only. It should not be taken as a recommendation.