A range trading opportunity for you?

Will Aggreko break lower, or will it rise back again to 887p?

• The Aggreko range has developed since early August
• Bounced off 813p support zone 4 times. Now trading 823p (at time of writing)
• Will the pattern repeat itself, testing previous highs?
• Shares -8.7% from 2018 highs; +27.8% from 2018 lows; +3.2% year-to-date
• Supplier of temporary power generation and temperature control equipment
• 1 Aug: Management says on track to deliver full year revenues/profits guidance
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading Aggreko – An Example

Let’s say you like the Aggreko range, you think it’s heading back towards 887p again. You decide to buy exposure to £10,000 worth of Aggreko using a CFD, at the current price of 823p. To do this, you need £2,000.

Let’s assume Aggreko rises back to 887p (+7.7%). Your profit would be £770, from your initial investment of £2,000.

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