Is this breakout a good trade for you?
Will AstraZeneca turn, or will it continue up towards 6523p?
- Breakout above 6075p to trade 6118p (at time of writing).
- The ‘trend is your friend’. Will it continue towards 6523p?
- Shares -6.4% from 2019 highs; +15.2% from 2019 lows; +4.2% year-to-date.
- 10 Jun: Diabetes drug helps prevent kidney complications
- 3 Jun: LYNPARZA has positive results versus chemotherapy
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading AstraZeneca– An Example
Let’s say the breakout appeals to you, you think it’s likely to continue to 6523p . You decide to buy exposure to £10,000 worth of AstraZeneca using a CFD, at the current price 6118p (at time of writing). To do this, you need £2,000.
Let’s assume the AstraZeneca trend continues upwards to 6523p (+6.6%). Your profit would be £660, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price. AstraZeneca breaks lower, falling 2% and it hits your stop-loss. Your loss would be £200.
This is provided for information purposes only. It should not be taken as a recommendation.