Pets At Home
Is this breakout a good trade for you?
Will Pets At Home turn, or will it continue up towards 221p?
- Breakout above 164p to trade 180p (at time of writing).
- The ‘trend is your friend’. Will it continue towards 221p?
- Shares -0.8% from 2019 highs; +59.8% from 2019 lows; +56.4% year-to-date.
- 22 May: FY results are a treat says AJ Bell
- 20 May: Like-for-like sales hint at sustained growth says Shore Capital
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Pets At Home – An Example
Let’s say the breakout appeals to you, you think it’s likely to continue to 221p . You decide to buy exposure to £10,000 worth of Pets At Home using a CFD, at the current price 180p (at time of writing). To do this, you need £2,000.
Let’s assume the Pets At Home trend continues upwards to 221p (+22%). Your profit would be £2200, 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. Pets At Home 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.