Will ITV break lower, or will it rise back again to 181p?

• The ITV range has developed since last October.
• Bounced off 141p support zone 5 times, most recently this week.
• Now trading 150p (at time of writing).
• Will the pattern repeat itself, testing previous highs?
• 3 Oct: Citigroup says ITV’s decision not to bid for Endemol is positive (won’t have to issue new shares)
• Shares -20.0% from 2018 highs; +3.9% from 2018 lows; -9.4% 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 181p again. You decide to buy exposure to £10,000 worth of ITV using a CFD, at the current price of 150p. To do this, you need £2,000.

Let’s assume ITV rises back to 181p (+20.6%). Your profit would be £2060, 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. ITV falls 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.