Ashmore
Is this breakout a good trade for you?
Will Ashmore turn, or will it continue to rise towards 430p?
- Breakout above resistance at 391p to trade 397p (at time of writing).
- The ‘trend is your friend’. Will it continue towards 430p?
- Shares -11.9% from 2018 highs; +17.7% from 2018 lows; +8.5% year-to-date.
- 15 Jan: Ashmore reports Q2 Assets Under Management +0.4%
- 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 430p . You decide to buy exposure to £10,000 worth of Ashmore using a CFD, at the current price 397p (at time of writing). To do this, you need £2,000.
Let’s assume the Ashmore trend continues upwards to 430p Apr highs (+8.3%). Your profit would be £830, 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. Ashmore 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.