A range trading opportunity for you?

Will Vesuvius break lower, or will it rise back again to 650p?

• The Vesuvius range has developed since February
• Bounced off 555p support zone 4 times. Now trading 560p (at time of writing)
• Will the pattern repeat itself, testing previous highs?
• Shares -13.9% from 2018 highs; +4% from 2018 lows; -4.1% year-to-date
• Global leader in molten metal flow engineering
• 26 July: Vesuvius shares up on 44% rise in pre-tax profit
• 26 July: Vesuvius looking strong at halfway point says Numis
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading Vesuvius – An Example

Let’s say you like the Vesuvius range, you think it’s heading back towards 650p again. You decide to buy exposure to £10,000 worth of Vesuvius using a CFD, at the current price of 560p. To do this, you need £2,000.

Let’s assume Vesuvius rises back to 650p (+16%). Your profit would be £1600, 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. Vesuvius falls 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.