Is this breakout a good trade for you?
Will Berkeley Group turn, or will it continue to rise toward 4337p 2018 highs?
- The chart shows share price action for Berkeley Group since late May.
- The shares have broken above shallow falling highs resistance around 3700p.
- Now trading 3772p (at time of writing).
- 9 Jan: FTSE Housebuilders are rallying following positive results from peer Taylow Wimpey.
- The ‘trend is your friend’. Will it continue? Will the shares rally back to 2018 highs of 4337p?
- Shares -1% from 2019 highs; +10.4% from 2019 lows; +8.2% year-to-date.
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Berkeley Group – 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 Berkeley Group using a CFD, at the current price of 3772p. To do this, you need £2,000.
Let’s assume the Berkeley Group trend continues toward 4337p 2018 highs (+14.9%). Your profit would be £1490, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 6% from the current price. Berkeley Group breaks lower, falling 6% and hits your stop-loss. Your loss would be £600.
This is provided for information purposes only. It should not be taken as a recommendation.