Is this trend a good trading opportunity?

Will Royal Bank of Scotland turn, or will it continue to march upwards beyond 297p?

• The chart shows last six months of price action.
• Shares in a 20-day uptrend after hitting support level around 238p last seen in Sep ’17.
• Shares are now at 261p.
• RBS shares are -15.5% from 2018 highs; +7.7% from 2018 lows; -6% year-to-date
• The shares broke above July’s previous high.
• In the last week, shares rose over 6.8%. Will the momentum continue?

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 261p. To do this, you need £2,000.

Let’s assume RBS trend continues to 297p May highs (+14%). Your profit would be £1,400, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 9% below the current price. RBS falls 9% and hits your stop-loss. Your loss would be £900.

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