Is this breakout a good trade for you?
Will easyJet turn, or will it continue to rise towards 1228p?
- Breakout from falling channel; Now trading 912p (at time of writing).
- Could they recover to April highs of 1228p?
- Shares -33.2% from 2019 highs; +8.8% from 2019 lows; +17.3% year-to-date
- Forced selling from FTSE reshuffle should now be complete
- Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal
Trading easyJet – An Example
Let’s say the breakout appeals to you, you think it’s likely to continue towards 1228p. You decide to buy exposure to £10,000 worth of easyJet using a CFD, at the current price of 912p. To do this, you need £2,000.
Let’s assume the easyJet trend continues to highs of 1228p (+34%). Your profit would be £3400, 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. easyJet 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.