Will National Grid break support, or will it rise again back o 875p?

• The National Grid rising channel range has developed since September .
• Bounced off rising support 4 times, most recently this week.
• Currently trading 833.2p (at time of writing)
• Will the pattern repeat itself, testing previous highs?
• Shares -7.7% from 2018 highs; +12.7% from 2018 lows; -4.7% year-to-date
• 8 Nov: Company says on track to meet asset growth at top end of 5-7% range
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading National Grid – An Example

Let’s say you like the range, you think it’s heading back towards 875p again. You decide to buy exposure to £10,000 worth of National Grid using a CFD, at the current price of 833.2p. To do this, you need £2,000.

Let’s assume National Grid recovers back to 875p (+5%). Your profit would be £500, 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. National Grid 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.