Is this breakout a good trade for you?
Will National Grid turn, or will it continue to rise towards 891p?
- Twin breakout to trade 847p (at time of writing).
- The ‘trend is your friend’. Will it continue towards March highs of 891p?
- Shares -5.0% from 2019 highs; +13.7% from 2019 lows; +10.9 year-to-date.
- Utilities recovering on reduced fear of a UK Labour government
- 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 847p. To do this, you need £2,000.
Let’s assume the National Grid trend continues to 891p highs (+5.1%). Your profit would be £510, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price. National Grid breaks lower, falling 2% and it hits your stop-loss. Your loss would be £200.
This is provided for information purposes only. It should not be taken as a recommendation.