Is this breakout a good trade for you?
Will Hiscox turn, or will it continue up towards 1723p?
- Double breakout above 1480p to trade 1500p (at time of writing).
- The ‘trend is your friend’. Will it continue towards 1723p?
- Shares -13.5% from 2018 highs; +16.4% from 2018 lows; -7.4% year-to-date.
- 3 Jan: London insurers better placed than European peers, says UBS
- 3 Jan: Flat renewal prices not an issue for Lloyd’s insurers: Canaccord
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Hiscox – An Example
Let’s say the breakout appeals to you, you think it’s likely to continue to 1723p . You decide to buy exposure to £10,000 worth of Hiscox using a CFD, at the current price 1500p (at time of writing). To do this, you need £2,000.
Let’s assume the Hiscox trend continues upwards to 1723p (+14.9%). Your profit would be £1490, 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. Hiscox 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.