BT
Is this breakout a good trade for you?
Will BT turn, or will it continue to rise towards 267p?
- Breakout above 228p to trade fresh 2-month highs
- Now 230.5p (at time of writing).
- Shares -5% from 2019 highs; +8.2% from 2019 lows; -3.2% year-to-date
- 16 Apr: Landebsbank upgrades to Buy with a target of 270p
- 29 Mar: Ofcom to allow all operators set prices for fibre broadband
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
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Trading BT – An Example
Let’s say the breakout appeals to you, you think it’s likely to continue towards 267p. You decide to buy exposure to £10,000 worth of BT using a CFD, at the current price of 230.5p. To do this, you need £2,000.
Let’s assume the BT trend continues to highs of 267p (+15.8%). Your profit would be £1580, 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. BT breaks lower, falling 5% and it hits your stop-loss. Your loss would be £500.
This is provided for information purposes only. It should not be taken as a recommendation.