Will Inmarsat break resistance, or will it fall back to 355p?

• 355-405p falling range, trading top of the range
• Shares checked by falling highs resistance at 405p
• Now trades 398p (at time of writing)
• Will the pattern repeat itself, testing previous 355p lows?
• Shares -2.7% from 2019 highs; +12.7% from 2019 lows; +4.8 year to date
• 18 Feb: Jefferies says Inmarsat is failing to convince the market of its value.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Inmarsat – An Example

Let’s say you like the range, you think it’s heading back towards 355p again. You decide to sell exposure to £10,000 worth of Inmarsat using a CFD, at the current price of 398p. To do this, you need £2,000.

Let’s assume Inmarsat fall back to 355p (-10.8%). Your profit would be £1080, 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. Inmarsat 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.