BT
Is this breakout a good trade for you?
Will BT turn, or will it continue to rise towards 267p?
- Double breakout above 196p and 200p; Now 203p (at time of writing).
- Shares -16.3% from 2019 highs; +6.6% from 2019 lows; -14.7% year-to-date
- 4 Jun: BT signs £50m training kit deal with England football
- 3 Jun: Credit Suisse upgrades to Buy and ups its target of 280p
- 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 203p. To do this, you need £2,000.
Let’s assume the BT trend continues to highs of 267p (+31%). Your profit would be £3100, 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.