BAE Systems
A range trading opportunity for you?
Will BAE Systems break support, or will it rise back to 500p?
- 441-500p range since November, bounced off floor
- Now trades 464p (at time of writing)
- Will the pattern repeat itself, testing previous 500p ceiling?
- Shares -12.5% from 2019 highs; +5.6% from 2019 lows; -1.0% year-to-date.
- 16 May: BAE Systems says targeting several new business opportunities in Middle East
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading BAE Systems – An Example
Let’s say you like the range, you think it’s heading back towards 500p again. You decide to buy exposure to £10,000 worth of BAE Systems using a CFD, at the current price of 464p. To do this, you need £2,000.
Let’s assume BAE Systems rises to 500p (+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. BAE Systems 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.