Will Bellway break resistance, or will it fall back to 2407p?

• Falling range channel since mid-June.
• Fallen from resistance 4 times. Now 2897p (at time of writing)
• Will the pattern repeat itself, shares testing prior 2407p lows?
• Shares -3% from 2019 highs; +17% from 2019 lows; +15.2% year-to-date
• Smaller peer Countryside said Q1 reservations slowed.
• Brexit uncertainty hampering the housing market.
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Bellway – An Example

Let’s say you like the Bellway range, you think it’s heading back down to 2407p again. You decide to sell exposure to £10,000 worth of Bellway using a CFD, at the current price of 2897p. To do this, you need £2,000.

Let’s assume Bellway falls back to 2407p Dec lows (-16.9%). Your profit would be £1690, 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. Bellway 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.