Will Beazley break resistance, or will it fall back to 484p?

• 484-578p narrowing range since May ’18, trading off the top of the range
• Now trades 544p (at time of writing)
• Will the pattern repeat itself, testing previous 484p Feb lows?
• Shares -6.0% from 2019 highs; +11.9% from 2019 lows; +8.1% year to date
• 7 Feb: Insurer reported sharply lower profits due to catastrophe losses.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Beazley – An Example

Let’s say you like the range, you think it’s heading back towards 484p again. You decide to sell exposure to £10,000 worth of Beazley using a CFD, at the current price of 544p. To do this, you need £2,000.

Let’s assume Beazley fall back to 484p (-11%). Your profit would be £1100, 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. Beazley 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.