Is this breakout a good trade for you?
Will Bellway turn, or will it continue to rise towards 3438p?
- Breakout above 3073p to trade fresh 10-month highs
- Now 3183p (at time of writing).
- Shares -0.4% from 2019 highs; +28.9% from 2019 lows; +26.6% year-to-date
- Housebuilder shares benefiting from delayed Brexit
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Bellway – An Example
Let’s say the breakout appeals to you, you think it’s likely to continue towards 3438p. You decide to buy exposure to £10,000 worth of Bellway using a CFD, at the current price of 3183p. To do this, you need £2,000.
Let’s assume the Bellway trend continues to highs of 3438p (+8%). Your profit would be £800, 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. Bellway 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.