Will Cobham break support, or will it rise again back to recent 109p highs?

• Cobham has a 102.5p support zone since late October, bouncing 4 times, most recently yesterday.
• Now trading 103.6p at time of writing).
• Will the pattern repeat itself, with the shares bouncing off support again?
• Shares -23.5% from 2018 highs; +2.3% from 2018 lows; -17.9% year-to-date
• Cobham sells a wide range of technology and services for commercial, defense and security
• 14 Nov: Cobham says trading in-line with expectations
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading Cobham – An Example

Let’s say you like the Cobham chart and you think the price is heading back towards 109p again. You decide to buy exposure to £10,000 worth of Cobham using a CFD, at the current price of 103.6p.  To do this, you need £2,000.

Let’s assume Cobham rises back to 109p (+5.2%). Your profit would be £520, 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. Cobham 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.