A range trading opportunity for you?

Will Kier Group break support, or will it rise again back to 1100p?

• The Kier range has developed since April.
• Bounced off 900p zone 4 times since mid-March. Now trading 917p (at time of writing)
• Will the Kier pattern repeat itself, testing previous highs?
• Shares -20.7% from 2018 highs; +4.2% from 2018 lows; -15.7% year-to-date
• 20 Sept:  Kier will receive a profit boost in fiscal 2020 from its streamlining program, Liberum says.
• 20 Sept: Kier FY results showed a return to pretax profit
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading Kier – An Example

Let’s say you like the range, you think it’s heading back towards 1101p again. You decide to buy exposure to £10,000 worth of Kier using a CFD, at the current price of 917p. To do this, you need £2,000.

Let’s assume Kier recovers back to 1101p (+20%). Your profit would be £2000, 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. Kier 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.