Will RPC turn, or will it continue to rise towards 828p Nov highs?

• Breakout above 726p resistance to trade 741p (at time of writing).
• The ‘trend is your friend’. Will it continue towards 828p?
• Wall St Journal says Apollo in “advanced talks” to acquire RPC for >£2.95bn
• Current price implies £3bn valuation; WSJ says deal potentially announced today.
• Will a formal offer materialise? Could expectations drive RPC higher?
• Shares -17.4% from 2018 highs; +16.2% from 2018 lows; +13.6% year-to-date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading RPC – 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 RPC using a CFD, at the current price 741p (at time of writing). To do this, you need £2,000.

Let’s assume the RPC trend continues upwards to 828p Nov highs (+11.7%). Your profit would be £1170, 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. RPC 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.