Will Rolls Royce turn, or will it continue to rise towards 1000p?

• Breakout above 885p resistance to trade 896p (at time of writing).
• The ‘trend is your friend’. Will it continue towards 1000p?
• Shares -3.2% from 2018 highs; +2.7% from 2018 lows; +3.2% year-to-date.
• 11 Jan: Jefferies says Rolls-Royce Trent 1000 woes receding
• 24 Dec: Norwegian Air and Rolls-Royce reach deal over engine issues.
• 12 Dec: Rolls Royce upgrades 2018 guidance to top of earlier range.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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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 896p (at time of writing). To do this, you need £2,000.

Let’s assume the Rolls Royce trend continues upwards to 1000p (+11.6%). Your profit would be £1160, 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. Rolls Royce 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.