Will Rolls Royce turn, or will it continue to rise beyond 840p?

• The chart shows the last 2 months’ price action for Rolls Royce
• The shares have broken beyond a resistance trendline at 814p to trade 835p (at time of writing).
• The ‘trend is your friend’. Will it continue?
• Shares -24.0% from 2018 highs; +12.4% from 2018 lows; -1.5% year-to-date.
• 16 Nov: Rolls Royce Chief: Backing Brexit plan better than no deal at all (BBC)
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Rolls Royce – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue to . You decide to buy exposure to £10,000 worth of Rolls Royce using a CFD, at the current price 835p (at time of writing). To do this, you need £2,000.

Let’s assume the Rolls Royce trend continues upwards to 998p (+19.5%). Your profit would be £1950, 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. Rolls Royce 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.