Will Rolls Royce turn, or will it maintain momentum to 950p?

• Shares +26% since early December. Breakout above 884p
• Now trading 895p (at the time of writing).
• Will the positive momentum continue towards 950p?
• Shares -10.8% from 2019 highs; +13.6% from 2019 lows; +7.9% year-to-date.
• 6 Jun: Rolls-Royce removes risk with pension sale says Jefferies
• 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 895p. To do this, you need £2,000.

Let’s assume Rolls Royce trend continues to 950p (+6.1%). Your profit would be £610, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 2% below the current price. Rolls Royce falls 2% and hits your stop-loss. Your loss would be £200.

This is provided for information purposes only. It should not be taken as a recommendation.