Beazley
Is this breakout a good trade for you?
Will Beazley turn, or will it continue to rise beyond 570p?
- The chart shows this year’s share price action for Beazley
- The shares have broken above a resistance line at 559p to trade 570p (at time of writing).
- The ‘trend is your friend’. Will it continue?
- Will the shares rise back to September highs of 603p?
- Shares -9% from 2018 highs; +16.8% from 2018 lows; +6.7% year-to-date.
- 8 Nov: Beazley nine-month gross written premiums +11%
- Source: Bloomberg, FT, Reuters, DJ Newswires
Trading Beazley– An Example
Let’s say the breakout appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of Beazley using a CFD, at the current price of 570p. To do this, you need £2,000.
Let’s assume the Beazley trend continues upwards to 603p (+5.8%). Your profit would be £580, 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. Beazley 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.