Will Rolls Royce turn, or will it continue to rise towards 1006p?

• Breakout above 916p; Now trading 927p (at time of writing).
• Could they recover to prior highs of 1006p?
• Shares -7.7% from 2019 highs; +17.5% from 2019 lows; +11.6% year-to-date
• 13 Mar: Gets Lufthansa Dreamliner deal; a boost for Trent 1000 engines
• 1 Mar: Vertical Research ups Rolls-Royce target price to £10
• 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 towards 1006p. You decide to buy exposure to £10,000 worth of Rolls Royce using a CFD, at the current price of 927p. To do this, you need £2,000.

Let’s assume the Rolls Royce trend continues to highs of 1006p (+8.5%). Your profit would be £850, 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.