Howden Joinery
Is this breakout a good trade for you?
Will Howden Joinery turn, or will it continue to towards 539p?
- Breakout above resistance at 492p to trade 498p (at time of writing).
- The ‘trend is your friend’. Will it continue towards 539p?
- Shares -7.5% from 2018 highs; +21.5% from 2018 lows; +14.4% year-to-date.
- 8 Nov: Howden Joinery sys business in-line with expectations
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Howden Joinery – 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 Howden using a CFD, at the current price of 498p. To do this, you need £2,000.
Let’s assume the Howden trend continues upwards to 539p (+8.2%). Your profit would be £820, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Howden breaks lower, falling 3% and it hits your stop-loss. Your loss would be £300.
This is provided for information purposes only. It should not be taken as a recommendation.