Is this breakout a good trade for you?
Will Cobham turn, or will it continue up towards 126p?
- Breakout above 110p to trade 112p (at time of writing).
- The ‘trend is your friend’. Will it continue towards 126p?
- Shares -18.5% from 2018 highs; +15.8% from 2018 lows; +14.7% year-to-date.
- 14 Nov: Cobham says trading in line with expectations
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Cobham – An Example
Let’s say the breakout appeals to you, you think it’s likely to continue to 126p . You decide to buy exposure to £10,000 worth of Cobham using a CFD, at the current price 112p (at time of writing). To do this, you need £2,000.
Let’s assume the Cobham trend continues upwards to 126p (+12.5%). Your profit would be £1250, 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. Cobham 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.