Will Legal & General break lower, or will it rise to 267p again?

• The Legal & General trading range has developed since late October .
• Shares bounced back from support three times, most recently last week.
• Now trading 247p (at time of writing).
• Will the pattern repeat itself, testing previous highs?
• Shares -15.9% from 2018 highs; +2.6% from 2018 lows; -9.7% year-to-date
• 8 Oct: Completes £2.4bn buyout for Nortel Networks UK Pension Plan
• 13 Sept: Completes £4.4bn buy-in with British Airways’ Pension Scheme
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading Legal & General– An Example

Let’s say you like the Legal & General range, you think it’s heading back towards 267p again. You decide to buy exposure to £10,000 worth of Legal & General using a CFD, at the current price of 247p. To do this, you need £2,000.

Let’s assume Legal & General rises back to 267p (+8%). Your profit would be £800, 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. Legal & General 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.