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

• Breakout above 927p; Now trading 940p (at time of writing).
• Could they recover to prior highs of 1006p?
• Shares -6.4% from 2019 highs; +19.2% from 2019 lows; +13.2% year-to-date
• 3 May: CFRA says outlook encouraging
• 2 May: Trading in-line, Growth in Civil Aerospace, momentum in Defense
• 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 940p. To do this, you need £2,000.

Let’s assume the Rolls Royce trend continues to highs of 1006p (+7.0%). Your profit would be £700, 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.