FirstGroup
Is this breakout a good trade for you?
Will FirstGroup turn, or will it continue to rise towards 120p?
- Breakout above 102p highs (best in 10 months)
- Now trading 106.2p (at time of writing).
- The ‘trend is your friend’. Will it continue towards 120p?
- Shares -0.2% from 2019 highs; +29.9% from 2019 lows; +27.3% year-to-date.
- 11 Apr: Activist investor ups stake (6.1% vs 4.1% prev) leading calls for a breakup
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading FirstGroup – 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 FirstGroup using a CFD, at the current price 106p (at time of writing). To do this, you need £2,000.
Let’s assume the FirstGroup trend continues upwards to 120p highs (+13.2%). Your profit would be £1320, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price. FirstGroup breaks lower, falling 4% and it hits your stop-loss. Your loss would be £400.
This is provided for information purposes only. It should not be taken as a recommendation.