Is this breakout a good trade for you?
Will Bovis Homes turn, or will it continue to rise beyond 932p?
- The chart shows the price action for Bovis since November.
- The shares have broken above a resistance trendline at 892p to trade 932p (at time of writing).
- The ‘trend is your friend’. Will it continue towards Nov highs of 1060p
- Shares -30.7% from 2018 highs; +11.0% from 2018 lows; +8.3% year-to-date.
- Housebuilders sensitive to Brexit developments, consumer confidence, house price data, interest rates
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Bovis Homes– An Example
Let’s say the breakout appeals to you, you think it’s likely to continue to . You decide to buy exposure to £10,000 worth of Bovis using a CFD, at the current price 932p (at time of writing). To do this, you need £2,000.
Let’s assume the Bovis trend continues upwards to 1060p Nov highs (+13.7%). Your profit would be £1370, 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. Bovis breaks lower, falling 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.