Will Balfour Beatty break lower, or will it rise back to 275p again?

• Balfour Beatty’s falling channel exists since late May
• Bounced from channel floor 3 times
• Now trading 244p (at time of writing)
• Will the pattern repeat itself, testing previous lows?
• Shares -23.2% from 2018 highs; +1.2% from 2018 lows; -17.8% year-to-date
• 4 Dec: Balfour repays £253m convertible bond; paid down 45% of gross debt over last year
• 28 Nov: Balfour JV wins HK$5.5bn contract in Hong Kong
• 4 Nov: Balfour secures contracts worth £425m with Highways England
• Source: Dow Jones, Bloomberg, FT, Company News, ALphaTerminal

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Trading Balfour Beatty – An Example

Let’s say you like the range, you think it’s heading back towards 275p again. You decide to Buy exposure to £10,000 worth of Balfour Beatty using a CFD, at the current price of 244p. To do this, you need £2,000.

Let’s assume Balfour Beatty rises back to 275p (+12.2%). Your profit would be £1220, 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 falls 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.