Will SSE break lower, or will it rise back again to 1200p?

• SSE has developed a rising channel range since mid-September .
• Bounced off support zone 4 times, most recently this today
• Now trading 1149.75p (at time of writing).
• Will the pattern repeat itself, testing previous highs?
• Shares -18.4% from 2018 highs; +9.8% from 2018 lows; -12.9% year-to-date.
• 9 Nov: SSE and Npower assess changes to terms, merger likely delayed
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading SSE – An Example

Let’s say you like the SSE range, you think it’s heading back towards 1200p again. You decide to buy exposure to £10,000 worth of SSE using a CFD, at the current price of 1149.75p. To do this, you need £2,000.

Let’s assume SSE rises back to 1200p (+4.3%). Your profit would be £430, 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. SSE falls 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.