A range trading opportunity for you?

Will PZ Cussons break lower, or will it rise back again to 241p?

• The PZ Cussons range has developed since mid-June.
• Bounced off 216p support zone 6 times. Now trading 220p (at time of writing)
• Will the pattern repeat itself, testing previous highs?
• Shares -34% from 2018 highs; +11.3% from 2018 lows; -32.3% year-to-date
• Good trading in Europe and Asia meant that first quarter has been in line with expectations.
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading PZ Cussons – An Example

Let’s say you like the PZ Cussons range, you think it’s heading back towards 241p again. You decide to buy exposure to £10,000 worth of PZ Cussons using a CFD, at the current price of 220p. To do this, you need £2,000.

Let’s assume PZ Cussons rises back to 241p (+9.5%). Your profit would be £950, 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. PZ Cussons falls 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.