Open A Buy Bet In The Arriva Rolling Spread
|
The Bet: We recommend opening a buy bet in the rolling Arriva(ARI) spread at GBP20 a penny when the quote is standing at 485p – 487p. The target is 530p plus and the stop loss is 456p for a risk of GBP620 at our suggested wager. The Fundamental View: We are backing a buy bet in transport group Arriva on reports in the Telegraph and other leading sources that Arriva’s chief executive David Martin had held “very preliminary discussions” over a potential deal with Keolis, which is 45.5pc-owned by SNCF, the French transport group. Arriva has said the talks concerned “a possible contribution of all or part of Keolis’ transportation business to Arriva” to create a group to capitalise on the ongoing liberalisation of the European transport market.
The Technical View: We are recommending a buy in Arriva rolling spread on the basis that there has been a rising trend channel in place since May, with the most noticeable event in the near term being the way that the past week witnessed a strange dip and rebound down to the black 200 day moving average at 459p. This can be regarded as a flush out of longs before significant upside, and it is probably worth holding on for an eventual 530p plus target while the 460p zone remains intact. The stop loss of 456p is just below the recent area of support.
Conclusion: Open a Buy Bet in the Arriva rolling spread after M&A talks are disclose. With www.t1pspreadbetting.com, you can be spreadbetting within minutes – click here to sign up.
|
- Post to: del.icio.us
- Digg
- Fark
