Is this breakout a good trade for you?
Will Ashmore turn, or will it continue to rise beyond 380p?
- The chart shows the price action for Ashmore since April.
- The shares have broken above a resistance trendline at 374p to trade 380p (at time of writing).
- The ‘trend is your friend’. Will it continue?
- Shares -15.3% from 2018 highs; +13.2% from 2018 lows; -6.0% year-to-date.
- 12 Oct: Ashmore reports Assets under Management +3% between July and September
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Ashmore – An Example
Let’s say the breakout appeals to you, you think it’s likely to continue to 427p . You decide to buy exposure to £10,000 worth of Ashmore using a CFD, at the current price 380p (at time of writing). To do this, you need £2,000.
Let’s assume the Ashmore trend continues upwards to 427p Apr highs (+12.4%). Your profit would be £1240, 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. Ashmore breaks lower, falling 5% and it hits your stop-loss. Your loss would be £500.
This is provided for information purposes only. It should not be taken as a recommendation.