A range trading opportunity for you?

Will Renishaw break support, or will it rise again back to 5700p?

• The Renishaw range has developed since April.
• Bounced off 4673p zone 6 times. Now trading 4799p (at time of writing)
• Will the Renishaw pattern repeat itself, testing previous highs?
• Shares -18.5% from 2018 highs; +8.7% from 2018 lows; -8.1% year-to-date
• 26 July: Renishaw reports full year 2018 pre-tax profits +33% on record Revenues
• Renishaw is an electronic equipment manufacturer, in the measurement and healthcare markets
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading Renishaw – An Example

Let’s say you like the range, you think it’s heading back towards 5700p again. You decide to buy exposure to £10,000 worth of Renishaw using a CFD, at the current price of 4799p. To do this, you need £2,000.

Let’s assume Renishaw recovers back to 5700p (+18.8%). Your profit would be £1877, 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. Renishaw 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.