Will RBS break lower, or will it rise back again to 250p?

• The RBS falling channel has developed since May.
• Bounced off falling support 3 times, most recently this week
• Currently trading 222p (at time of writing)
• Will the pattern repeat itself, testing previous highs?
• Shares -27.4% from 2018 highs; +5.9% from 2018 lows; -20.1% year-to-date
• 21 Nov: Barclays says BoE stress tests unlikely to disrupt UK banks’ capital-return plans
• 14 Nov: RBS gives additional role to potential CEO candidate Alison Rose
• 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 250p again. You decide to buy exposure to £10,000 worth of RBS using a CFD, at the current price of 222p. To do this, you need £2,000.

Let’s assume RBS rises back to 250p (+12.6%). Your profit would be £1260, 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. RBS falls 5% 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.