Is this breakout a good trade for you?
Will Ashtead turn, or will it continue to fall towards 2200p? (6%)
- Breakout above 2040p to trade 2067p (at time of writing).
- The ‘trend is your friend’. Will it continue towards 2200p?
- Shares -13.2% from 2019 highs; +14.6% from 2019 lows; +11.0% year-to-date.
- 5 Mar: AJ Bell says share price highlights US economic fears
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Ashtead – An Example
Let’s say the breakdown appeals to you, you think it’s likely to continue to 2200p . You decide to buy exposure to £10,000 worth of Ashtead using a CFD, at the current price 2067p (at time of writing). To do this, you need £2,000.
Let’s assume the Ashtead trend continues down towards 2200p? (6%). Your profit would be £600, 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. Ashtead falls 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.