Is this breakout a good trade for you?
Will Intercontinental Hotels turn, or will it continue to rise towards 5100p? (+5%)
- Breakout above Feb highs resistance at 4700p.
- Now trading at 4839p (at time of writing).
- The ‘trend is your friend’. Will it continue towards 5100p? (+5%)
- 11th April. Brexit related stocks having a bounce due to the deadline extension
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Intercontinental Hotels – An Example
Let’s say the breakout appeals to you, you think it’s likely to continue towards 5100p. You decide to buy exposure to £10,000 worth of Intercontinental Hotels using a CFD, at the current price of 4839p. To do this, you need £2,000.
Let’s assume the Intercontinental Hotels trend continues to 5100p (+5%). Your profit would be £500, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 2.5% from the current price. Intercontinental Hotels breaks lower, falling 2.5% and it hits your stop-loss. Your loss would be £250.
This is provided for information purposes only. It should not be taken as a recommendation.