A range trading opportunity for you?

Will Schroders break support, or will it rise again back to 3128p?

• The Schroders range has developed since late August.
• Bounced off 2949p zone 5 times. Now trading 3016p (at time of writing)
• Will the Schroders pattern repeat itself, testing previous highs?
• Shares -21.2% from 2018 highs; +1.4% from 2018 lows; -14.1% year-to-date
• In late July the asset manager reported pre-tax profits +10%, but assets under management flat.
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading Schroders – An Example

Let’s say you like the range, you think it’s heading back towards 3150p again. You decide to buy exposure to £10,000 worth of Schroders using a CFD, at the current price of 3015p. To do this, you need £2,000.

Let’s assume Schroders recovers back to 3150p (+4.4%). Your profit would be £440, 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. Schroders 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.