RBS
Is this trend a good trading opportunity?
Will RBS turn, or will it continue to rise to 2018 highs around 302p?
- Bank’s shares +29.7% since mid-December.
- Strong full-year results providing extra momentum, shares +9% since 15 Feb.
- RBS declared a 3.5p/share final & extra 7.5p/share special dividend.
- Now trading 257p (at the time of writing).
- Will the positive momentum continue towards 302p?
- Shares trade at 2019 highs; +22.2% from 2019 lows; +18.6% year-to-date.
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Click to enlarge
Trading RBS – 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 RBS using a CFD, at the current price of 257p. To do this, you need £2,000.
Let’s assume the RBS trend continues to 2018 highs around 302p (+17.5%). Your profit would be £1750, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 7% from the current price. RBS falls 7% and hits your stop-loss. Your loss would be £700.
This is provided for information purposes only. It should not be taken as a recommendation.