A range trading opportunity for you?

Will Standard Life Aberdeen break support, or will it rise again back to 330p?

• The Standard Life Aberdeen (SLA) range has developed since July.
• Bounced off 303p zone 8 times since July. Now trading 308p (at time of writing)
• Will the SLA pattern repeat itself, testing previous highs?
• Shares -31.3% from 2018 highs; +1.6% from 2018 lows; -29.5% year-to-date
• The company has recently completed the sale of Standard Life Assurance to Phoenix Group and plans to use the proceeds for a £1.75bn share buyback.
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading Standard Life Aberdeen (SLA) – An Example

Let’s say you like the range, you think it’s heading back towards 330p again. You decide to buy exposure to £10,000 worth of SLA using a CFD, at the current price of 308p. To do this, you need £2,000.

Let’s assume SLA recovers back to 330p (+7.1%). Your profit would be £710, 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. SLA 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.