Will RSA Insurance turn, or will it continue to rise towards 594p?

• Twin breakout above 550p; successfully retested for support
• Now trading 551p (at time of writing).
• Could the breakout see the shares rally back to 594p?
• Shares -1.6% from 2019 highs; +10.5% from 2019 lows; +7.4% year-to-date
• 9 May; Q1 net written premiums +3%; operating profit rises at constant FX,
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading RSA Insurance – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue towards 594p. You decide to buy exposure to £10,000 worth of RSA Insurance using a CFD, at the current price of 551p. To do this, you need £2,000.

Let’s assume the RSA Insurance trend continues to highs of 594p (+7.8%). Your profit would be £780, 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. RSA Insurance 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.