Will Rolls-Royce continue falling, or will it recover highs of 930p (+9%)?

• Rolls-Royce shares -10% from recent highs; bounce off 834p
• Now trades 850p (at time of writing).
• Can the stock recover to recent highs 930p highs (9%)?
• Shares -15.3% from 2019 highs; +7.9% from 2019 lows; +2.4% year-to-date.
• 27 Jun: H1 to show higher EBITA, lower cash says Citigroup
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Rolls-Royce – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards 930p. You decide to buy exposure to £10,000 worth of Rolls-Royce using a CFD, at the current price of 850p. To do this, you need £2,000.

Let’s assume Rolls-Royce  recovers back to recent highs of 930p (+9%). Your profit would be £900, 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. Rolls-Royce 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.