A range trading opportunity for you?

Will Barratt Developments break lower, or will it rise back again to 522p?

• The Barratt Developments range has developed 2 weeks ago.
• Bounced off rising support, with 5 bounces since October 2016.
• Now trading 496p (at time of writing).
• Will the pattern repeat itself, testing previous highs?
• Recent Barratt Developments results signalled a good start to the year, according to analysts at AJ Bell (17 Oct), supporting a bounce from support.
• Shares -25.7% from 2018 highs; +2.6% from 2018 lows; -23% year-to-date
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading Barratt Developments– An Example

Let’s say you like the Barratt Developments range, you think it’s heading back towards 522p again. You decide to buy exposure to £10,000 worth of Barratt Developments using a CFD, at the current price of 496p. To do this, you need £2,000.

Let’s assume Barratt Developments rises back to 522p (+5.2%). Your profit would be £520, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price. Barratt Developments falls 4% and hits your stop-loss. Your loss would be £400.

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