Beazley
Is this trend a good trading opportunity?
Will Beazley turn, or will it continue to rise to Nov highs around 585p?
- Shares +13.8% since early February.
- 7 Feb: Insurer says it expects a stronger 2019 on increasing premium prices.
- Now trading 546p (at the time of writing).
- Will the positive momentum continue towards 585p?
- Shares -1.2% from 2019 highs; +10.9% from 2019 lows; +8.4% year-to-date.
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
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Trading Beazley – An Example
Let’s say the trend appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of Beazley using a CFD, at the current price of 546p. To do this, you need £2,000.
Let’s assume the Beazley trend continues to Nov highs around 585p (+7.1%). Your profit would be £710, 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. Beazley falls 3% and hits your stop-loss. Your loss would be £300.
This is provided for information purposes only. It should not be taken as a recommendation.