NMC Health
A range trading opportunity for you?
Will NMC break resistance, or will it fall to 2100p?
- 2100-2695p range since November; Now trades 2695p (at time of writing)
- Will the pattern repeat itself, testing the 2100p resistance?
- Shares -10.8% from 2019 highs; +27.4% from 2019 lows; -1.6% year-to-date.
- Price hasn’t been able to breach the 100 day SMA for almost 6 months.
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Click to enlarge
Trading NMC – An Example
Let’s say you like the range, you think it’s heading down towards 2100p again. You decide to sell exposure to £10,000 worth of NMC using a CFD, at the current price of 2695p. To do this, you need £2,000.
Let’s assume NMC falls to 2100p (22%). Your profit would be £2200, 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. NMC rises 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.