Is this breakout a good trade for you?
Will AJ Bell turn, or will it continue to rise towards 473p (+15%)?
- Uptrend since January; Breakout above 404p;
- Now trading 411p (at time of writing).
- Could they recover to April highs of 473p (+15%)?
- Shares -14.7% from 2019 highs; +81.9% from 2019 lows; +70.8% year-to-date.
- Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal
Trading AJ Bell – An Example
Let’s say the breakout appeals to you, you think it’s likely to continue towards 473p. You decide to buy exposure to £10,000 worth of AJ Bell using a CFD, at the current price of 411p. To do this, you need £2,000.
Let’s assume the AJ Bell trend continues to highs of 473p (+15%). Your profit would be £1500, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. AJ Bell breaks lower, falling 3% and it hits your stop-loss. Your loss would be £300.
This is provided for information purposes only. It should not be taken as a recommendation.