Will Rolls Royce turn, or will it maintain momentum to 999p September highs?

• Shares +26% since early December.
• 14 Feb: Engine maker secured new orders from Emirates Airlines for Trent engines.
• 13 Feb: Credit Suisse upgrades, saying RR getting to grips with Trent 1000 issues
• Now trading 952p (at the time of writing).
• Will the positive momentum continue towards 999p September highs?
• Shares trading at 2019 highs; +19.5% from 2019 lows; +15% year-to-date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Rolls Royce – 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 Rolls Royce using a CFD, at the current price of 952p. To do this, you need £2,000.

Let’s assume Rolls Royce trend continues to 999p September highs (+4.9%). Your profit would be £490, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% below the current price. Rolls Royce 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.