A range trading opportunity for you?

Will BAE Systems break support, or will it rise again back to 644p?

• The BAE range has developed over last 2 months
• Bounced off 603p zone twice. Now trading 613p (at time of writing)
• Will the pattern repeat itself, testing previous 644p highs?
• Shares -10.4% from 2018 highs; +9.6% from 2018 lows; +7.0% year-to-date
• 18 Sept: BAE says £5bn Qatar pact now effective; deliveries of First Typhoon, Hawk Aircraft to start in 2022
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading BAE Systems – An Example

Let’s say you like the range, you think it’s heading back towards 644p again. You decide to buy exposure to £10,000 worth of BAE using a CFD, at the current price of 613p. To do this, you need £2,000.

Let’s assume BAE recovers back to 644p (+5.0%). Your profit would be £500, 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. BAE 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.