Dechra Pharma
Is this breakout a good trade for you?
Will Dechra Pharma turn, or will it continue to rise beyond 2,516p?
- The chart shows the last month’s price action for Dechra Pharma.
- The shares have broken above resistance level around 2,300p to trade 2,316p (at time of writing).
- The ‘trend is your friend’. Will it continue?
- Company announced on 19 Oct that Q1 performance was in-line with expectations, with above-market-growth in both NA and EU pharmaceuticals.
- Dechra Pharma also reiterated FY guidance.
- Shares -32% from 2018 highs; +10% from 2018 lows; +10.5% year-to-date.
- Source: Bloomberg, FT, Reuters, DJ Newswires
Trading Dechra Pharma – 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 Dechra Pharma using a CFD, at the current price of 2,316p. To do this, you need £2,000.
Let’s assume the Dechra Pharma trend continues to 2,516p recent highs (+8.6%). Your profit would be £860, 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. Dechra Pharma 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.