Will RSA Insurance break resistance, or will it fall back to 498p?

• 498-546p range since November; Now trades 543p (at time of writing)
• Will the pattern repeat itself, testing the 498p floor?
• Shares -0.7% from 2019 highs; +9.1% from 2019 lows; +6% year-to-date.
• 4 Apr: UK 100 Falls as Insurers, Oil Stocks Weigh.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading RSA Insurance – An Example

Let’s say you like the range, you think it’s heading back towards 498p again. You decide to sell exposure to £10,000 worth of RSA Insurance using a CFD, at the current price of 543p. To do this, you need £2,000.

Let’s assume RSA Insurance falls to 498p (-9%). Your profit would be £900, 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. RSA Insurance rises 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.