NMC Health
A range trading opportunity for you?
Will NMC break resistance, or will it rise back to 2900p (+18.9%)?
- 2148-2900p range; double breakout
- Now trades 2439p (at time of writing)
- Will the pattern repeat itself, testing 2900p resistance (+18.9%)?
- Shares -19.1% from 2019 highs; +15.6% from 2019 lows; -10.8% year-to-date.
- 30 May: CEO buys £1.9m of company shares
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading NMC – An Example
Let’s say you like the range, you think it’s heading up towards 2900p again. You decide to buy exposure to £10,000 worth of NMC using a CFD, at the current price of 2439p. To do this, you need £2,000.
Let’s assume NMC rises to 2900p (+18.9%). Your profit would be £1890, 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. NMC 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.