Will Saga break lower, or will it rise back again to 139p?

• The Saga range has developed since April .
• Bounced off 118.5p support zone 4 times, most recently this week.
• Now trading 120.6p (at time of writing).
• Will the pattern repeat itself, testing previous highs?
• 27 Sept: Numis says H1 results (in-line, profits up) show signs of promise
• Shares -15.2% from 2018 highs; +10.8% from 2018 lows; -4.4% year-to-date
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading Saga – An Example

Let’s say you like the Saga range, you think it’s heading back towards 139p again. You decide to buy exposure to £10,000 worth of Saga using a CFD, at the current price of 120p. To do this, you need £2,000.

Let’s assume Saga rises back to 139p (+15.8%). Your profit would be £1580, 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. Saga falls 5% and hits your stop-loss. Your loss would be £500.

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