A range trading opportunity for you?

Will Tate & Lyle break lower, or will it rise back again to 694p?

• The Tate & Lyle range has developed since late May.
• Bounced off 620p support zone 6 times. Now trading 629p (at time of writing)
• Will the pattern repeat itself, testing previous highs?
• Shares -10.1% from 2018 highs; +21.2% from 2018 lows; -10.5% year-to-date
• Recent cost-cutting programme is helping the company achieve ambitious FY targets.
• Brokerage Jefferies recently improved its target price on Tate & Lyle to 700p (from 66p)
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading Tate & Lyle – An Example

Let’s say you like the Tate & Lyle range, you think it’s heading back towards 694p again. You decide to buy exposure to £10,000 worth of Tate & Lyle using a CFD, at the current price of 629p. To do this, you need £2,000.

Let’s assume Tate & Lyle rises back to 694p (+10.3%). Your profit would be £1,030, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 7% from the current price. Tate & Lyle falls 7% and hits your stop-loss. Your loss would be £700.

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