A range trading opportunity for you?

Will Wizz Air break lower, or will it rise back again to 2,645p?

• The Wizz Air range has developed since early October.
• Bounced off 2,337p support zone 7 times. Now trading 2,404p (at time of writing).
• Airline shares are trading higher following stronger-than-expected results from low-cost carrier Ryanair.
• Will the pattern repeat itself, testing previous highs?
• Shares -37.6% from 2018 highs; +3.8% from 2018 lows; -34% year-to-date
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading Wizz Air– An Example

Let’s say you like the Wizz Air range, you think it’s heading back towards 2,645p again. You decide to buy exposure to £10,000 worth of Wizz Air using a CFD, at the current price of 2,404p. To do this, you need £2,000.

Let’s assume Wizz Air rises back to 2,645p (+10%). Your profit would be £1,000, 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. Wizz Air 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.