A range trading opportunity for you?

Will ITV break lower, or will it rise back again to 162p?

• The ITV range has developed since September.
• Bounced off 151p support zone 7 times, most recently today.
• Now trading 152p (at time of writing).
• Will the pattern repeat itself, testing previous highs?
• According to analysts at Citigroup (3 Oct), ITV’s decision not to bid for Endemol Shine Group is positive, as it means the UK broadcaster won’t have to issue shares.
• Shares -15.6% from 2018 highs; +9.6% from 2018 lows; -8.2% year-to-date
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading ITV – An Example

Let’s say you like the ITV range, you think it’s heading back towards 162p again. You decide to buy exposure to £10,000 worth of ITV using a CFD, at the current price of 152p. To do this, you need £2,000.

Let’s assume ITV rises back to 162p (+6.5%). Your profit would be £650, 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. ITV 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.