Will Rolls Royce break resistance, or will it fall back to 876p?

• 876-927p range since March; breach of recent rising support
• Now trades 918p (at time of writing)
• Will the pattern repeat itself, testing the 876p floor?
• Shares -8.8% from 2019 highs; +16.1% from 2019 lows; +10.3% year-to-date.
• 10 Apr: Guidance for costs on Trent 1000 in 2019 and 2020 remains unchanged
• 3 Apr: Weak order intake causes concern says Investec; Citi says extra costs
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Rolls Royce – An Example

Let’s say you like the range, you think it’s heading back towards 876p again. You decide to sell exposure to £10,000 worth of Rolls Royce using a CFD, at the current price of 918p. To do this, you need £2,000.

Let’s assume Rolls Royce falls to 876p (-4.5%). Your profit would be £450, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price. ITV rises 2% and hits your stop-loss. Your loss would be £200.

This is provided for information purposes only. It should not be taken as a recommendation.