National Grid
Is this breakout a good trade for you?
Will National Grid turn, or will it continue to rise beyond 865p highs?
- Breakout above resistance at 810p to trade 826p (at time of writing).
- The ‘trend is your friend’. Will it continue towards Nov highs of 865p?
- Shares -9.8% from 2018 highs; +10.1% from 2018 lows; +8.3% year-to-date.
- 8 Jan: Reaches agreement with unions in Massachusetts
- 8 Nov: Says on track to meet asset growth at top end of 5%-7% range
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading National Grid – 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 National Grid using a CFD, at the current price of 826p. To do this, you need £2,000.
Let’s assume the National Grid trend continues to 865p highs (+4.8%). Your profit would be £480, 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. National Grid 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.