A range trading opportunity for you?

Will Grafton Group fall below support, or will it rise again back to 826p?

• Grafton’s range has developed since January
• Bounced off rising support 4 times, most recently at 749p. Now trading 754p (at time of writing)
• Will the pattern repeat itself, testing previous highs?
• Shares -10.8% from 2018 highs; +2.5% from 2018 lows; -6% year-to-date
• 22 Aug: Peel Hunt says Grafton FY Profit is set to be beat expectations, while Liberum said Strong H1 could mean guidance upgrades; Numis (21 Aug) said Grafton shares merit higher rating ahead of H1

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Trading Grafton – An Example

Let’s say you like the Grafton range, you think it’s heading back towards 826p again. You decide to buy exposure to £10,000 worth of Grafton using a CFD, at the current price of 754p. To do this, you need £2,000.

Let’s assume Grafton recovers back to 826p (+9.5%). Your profit would be £950, 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. Grafton 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.