Is this trend a good trading opportunity?

Will Standard Life Aberdeen turn, or will it continue to fall to 2016 lows of 248p?

• The chart shows the Standard Life Aberdeen price action since March.
• Shares in a 10-month downtrend from 445p 2018 highs; now at 266p.
• Negative momentum started when Lloyds Banking stripped Standard Life Aberdeen of its contract to manage £109bn Scottish Widows pensions scheme.
• Shares -39% from 2018 highs; +1% from 2018 lows; -39% year-to-date
• In the last week, the shares have fallen close to 8%. Will this momentum continue?

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Trading Standard Life Aberdeen – An Example

Let’s say the trend appeals to you, you think it’s likely to continue. You decide to sell exposure to £10,000 worth of Standard Life Aberdeen using a CFD, at the current price of 266p. To do this, you need £2,000.

Let’s assume Standard Life Aberdeen trend continues to 2016 low of 248p (-6.7%). Your profit would be £670, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Standard Life Aberdeen rises 5% and hits your stop-loss. Your loss would be £500.

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