Will Standard Chartered break higher, or will it fall back to 515p lows again?

• The Standard Chartered falling range exists since Jan 2018
• Bounced back from falling highs trendline 4 times, most recently yesterday.
• Now trading 591p (at time of writing)
• Will the pattern repeat itself, testing previous lows?
• Shares -29.7% from 2018 highs; +18.1% from 2018 lows; -24.2% year-to-date
• 29 Nov: Berenberg says StanChart among winners of UK stress tests
• 26 Nov: Bloomberg says StanChart eyeing simpler structure
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Standard Chartered – An Example

Let’s say you like the range, you think it’s heading back towards 515p again. You decide to sell exposure to £10,000 worth of Standard Chartered using a CFD, at the current price of 591p. To do this, you need £2,000.

Let’s assume Standard Chartered falls back to 515p (-12.9%). Your profit would be £1290, 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. Standard Chartered rises 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.