A range trading opportunity for you?

Will Aviva break support, or will it rise again back to 496p?

• The Aviva range has developed since mid-August.
• Bounced off 475p support zone 4 times. Now trading 480p (at time of writing)
• Will the Aviva pattern repeat itself, testing previous highs?
• Shares -13.8% from 2018 highs; +1.5% from 2018 lows; -5.3% year-to-date
• 28 Aug: UBS says Prudential and Aviva had a strong 1H but L&G concerns linger
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading Aviva – An Example

Let’s say you like the range, you think it’s heading back towards 496p again. You decide to buy exposure to £10,000 worth of Aviva using a CFD, at the current price of 480p. To do this, you need £2,000.

Let’s assume Aviva recovers back to 496p (+3.3%). Your profit would be £333, 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. Aviva  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.