Will Balfour Beatty break higher, or will it fall back to 246p October lows again?

• Balfour Beatty’s falling channel exists since late May
• Bounced back from falling highs trendline 6 times, most recently this month.
• Now trading 266p (at time of writing)
• Will the pattern repeat itself, testing previous lows?
• Shares -15.7% from 2018 highs; +8.8% from 2018 lows; -10.4% year-to-date
• 7 Nov: Balfour Beatty secures contracts worth £425m with Highways England
• Source: Dow Jones, Bloomberg, FT, Company News

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Trading Balfour Beatty – An Example

Let’s say you like the range, you think it’s heading back towards 246p again. You decide to sell exposure to £10,000 worth of Balfour Beatty using a CFD, at the current price of 266p. To do this, you need £2,000.

Let’s assume Balfour Beatty falls back to 246p (-7.5%). Your profit would be £750, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Balfour Beatty rises 5% and hits your stop-loss. Your loss would be £500.

This is provided for information purposes only. It should not be taken as a recommendation.