RPC
Is this breakout a good trade for you?
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


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.
