Will Lloyds break lower , or will it rise back to 60p again?

• Lloyds’ falling channel exists since January
• Bounced off floor 5 times, most recently yesterday/today.
• Now trading 54.5p (at time of writing)
• Will the pattern repeat itself, testing previous lows?
• Shares -23.7% from 2018 highs; +1.7% from 2018 lows; -19.4% year-to-date
• 15 Nov: Shares fell sharply yesterday on Brexit turmoil
• Source: Dow Jones, Bloomberg, FT, Company News

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Trading Lloyds – An Example

Let’s say you like the range, you think it’s heading back towards 60p again. You decide to sell exposure to £10,000 worth of Lloyds using a CFD, at the current price of 54.6p. To do this, you need £2,000.

Let’s assume Lloyds rises back to 60p (+9.9%). Your profit would be £990, 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. Lloyds 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.