Will RBS turn, or will it continue to rise beyond 246p?

• The chart shows the last 4 months’ price action for RBS.
• The shares have broken back above the summer support line at 240p
• Shares trading 246p (at time of writing).
• The ‘trend is your friend’. Will it continue?
• Shares -22.3% from 2018 highs; +7.1% from 2018 lows; -11.5% year-to-date.
• The shares have rallied back from a disappointing set of Q3 results on 26 Oct
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading RBS– An Example

Let’s say the breakout appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of RBS using a CFD, at the current price of 246p. To do this, you need £2,000.

Let’s assume the RBS trend continues to 263p September highs (+6.9%). Your profit would be £690, 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. RBS 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.