NMC Health
A range trading opportunity for you?
Will NMC break resistance, or will it rise back to 2520p (+7.6%)?
- 2209-2520p range; double breakout
- Now trades 2330p (at time of writing)
- Will the pattern repeat itself, testing 2520p resistance (+7.6%)?
- Shares -23% from 2019 highs; +10% from 2019 lows; -10.8% year-to-date.
- 30 May: CEO buys £1.9m of company shares
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
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Trading NMC – An Example
Let’s say you like the range, you think it’s heading up towards 2520p again. You decide to buy exposure to £10,000 worth of NMC using a CFD, at the current price of 2328p. To do this, you need £2,000.
Let’s assume NMC rises to 2520p (+7.6%). Your profit would be £760, 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. NMC 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.