Is this breakout a good trade for you?
Will Bellway turn, or will it continue to fall towards 2400p?
- Breakdown below 2818p to trade 2806p (at time of writing).
- The ‘trend is your friend’. Will it continue down towards 2400p?
- Shares -24.4% from 2018 highs; +16.2% from 2018 lows; +11.6% year-to-date.
- 7 Feb: Bellway shares have less upside after H1 update says Peel Hunt
- 7 Feb: Bellway slows site buys pending Brexit outcome
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Bellway – An Example
Let’s say the breakdown appeals to you, you think it’s likely to continue to 2400p . You decide to sell exposure to £10,000 worth of Bellway using a CFD, at the current price 2806p (at time of writing). To do this, you need £2,000.
Let’s assume the Bellway trend continues down towards 2400p (-14.4%). Your profit would be £1440, 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. Bellway breaks higher, rising 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.