A range trading opportunity for you?

Will Close Bros break support, or will it rise again back to 1675p?

• The Close Bros range has developed since November.
• Bounced off rising support 6 times, most recently at 1510p. Now trading 1534p (at time of writing)
• Will the Close Bros pattern repeat itself, testing previous highs?
• Shares -9.8% from 2018 highs; +9.1% from 2018 lows; +6% year-to-date
• 25 Sept: FY 2018 Profits rise, Increases dividend
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading Close Bros – An Example

Let’s say you like the range, you think it’s heading back towards 1675p again. You decide to buy exposure to £10,000 worth of Close Bros using a CFD, at the current price of 1534p. To do this, you need £2,000.

Let’s assume Close Bros recovers back to 1675p (+9.2%). Your profit would be £920, 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. Close Bros falls 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.