Is this breakout a good trade for you?
Will Aston Martin turn, or will it continue to rise towards 1366p?
- Breakout above 1020p; Now trading 1047p (at time of writing).
- Could they recover to prior highs of 1366p?
- Shares -23.8% from 2019 highs; +32.6% from 2019 lows; -14.4% year-to-date
- 15 May: Aston backs FY sales targets
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Aston Martin – An Example
Let’s say the breakout appeals to you, you think it’s likely to continue towards 1366p. You decide to buy exposure to £10,000 worth of Aston Martin using a CFD, at the current price of 1047p. To do this, you need £2,000.
Let’s assume the Aston Martin trend continues to highs of 1366p (+30%). Your profit would be £3000, 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. Aston Martin 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.