Will BAE Systems turn, or will it continue to rise towards 500p?

• Double breakout above 452p and 458p to trade 466p (at time of writing).
• The ‘trend is your friend’. Will it continue to 500p highs?
• Shares -12% from 2019 highs; +6.2% from 2019 lows; +1.7% year-to-date
• 16 May: BAE eyeing more Middle Eastern opportunities
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading BAE System – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue towards 500p. You decide to buy exposure to £10,000 worth of BAE System using a CFD, at the current price of 466p. To do this, you need £2,000.

Let’s assume the BAE System trend continues to 500p (+7.2%). Your profit would be £720, 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. BAE System 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.