A range trading opportunity for you?

Will InterContinental break support, or will it rise again back to 4800p?

• The IHG range has developed over last 2 months
• Bounced off 4574p zone 3 times since early Aug. Now trading 4588p (at time of writing)
• Will the pattern repeat itself, testing previous 4800p highs?
• Shares -8.3% from 2018 highs; +11.3% from 2018 lows; -2.3% year-to-date
• 7 Aug: IHG’s CEO said the group added 3 new brands in last year aiming to capture more US and China customers searching for lower prices and luxury experiences.
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading InterContinental – An Example

Let’s say you like the range, you think it’s heading back towards 4800p again. You decide to buy exposure to £10,000 worth of InterContinental using a CFD, at the current price of 4588p. To do this, you need £2,000.

Let’s assume InterContinental recovers back to 4800p (+4.6%). Your profit would be £460, 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. InterContinental 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.