Will BAE Systems break resistance, or will it fall back to 441p (-8.8%)?

• 441-498p narrowing range, topped out at ceiling
• Now trades 484p (at time of writing)
• Will the pattern repeat itself, testing previous 441p floor (-8.8%)?
• Shares -8.6% from 2019 highs; +10.3% from 2019 lows; +5.5% year-to-date.
• 1 July; BAE to report higher H1 profits says Credit Suisse
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading BAE Systems – An Example

Let’s say you like the range, you think it’s heading back down towards 441p again. You decide to sell exposure to £10,000 worth of BAE Systems using a CFD, at the current price of 484p. To do this, you need £2,000.

Let’s assume BAE Systems falls to 441p (-8.8%). Your profit would be £880, 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 rises 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.