Will Rolls Royce turn, or will it continue to rise to Sept highs of 999p?

• Breakout above 898p and 916p to trade 941p (at time of writing).
• The ‘trend is your friend’. Will it continue towards 999p?
• Shares -17.3% from 2018 highs; +22.3% from 2018 lows; +13.3% year-to-date.
• 13 Feb: Credit Suisse upgrades, saying RR getting to grips with Trent 1000 issues
• 9 Jan: Rolls among Goldman’s top aerospace picks
• 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 999p . You decide to buy exposure to £10,000 worth of Rolls Royce using a CFD, at the current price 941p (at time of writing). To do this, you need £2,000.

Let’s assume the Rolls Royce trend continues upwards to 999p Sept highs (+6.1%). Your profit would be £610, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price. Rolls Royce breaks lower, falling 2% and it hits your stop-loss. Your loss would be £200.

This is provided for information purposes only. It should not be taken as a recommendation.