A range trading opportunity for you?

Will RBS break lower, or will it rise back again to 265p?

• The RBS rising channel has developed since early July
• Bounced off rising support 6 times. Now trading 246p (at time of writing)
• Will the pattern repeat itself, testing previous highs?
• Shares -19.7% from 2018 highs; +2.4% from 2018 lows; -11.5% year-to-date
• 8 Oct: Goodbody says RBS could benefit from potential name change
• 27 Sept: RBS plans to launch mobile-only lender ‘Bo’ next year
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading RBS – An Example

Let’s say you like the RBS range, you think it’s heading back towards 265p again. You decide to buy exposure to £10,000 worth of RBS using a CFD, at the current price of 246p. To do this, you need £2,000.

Let’s assume RBS rises back to 265p (+7.7%). Your profit would be £770, 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. RBS 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.