Is this breakout a good trade for you?
Will Sage turn, or will it continue to rise beyond 619p?
- The chart shows the price action for Sage since August .
- The shares have broken above a resistance trendline at 609p to trade 619p (at time of writing).
- The ‘trend is your friend’. Will it continue towards August highs of 676p
- Shares -26.2% from 2018 highs; +23.9% from 2018 lows; +3% year-to-date.
- 4 Dec: Sage names Jonathan Howell Chief Financial Officer
- 21 Nov: Shore Capital says Sage makes progress in cloud transition ahead of investment
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Sage – An Example
Let’s say the breakout appeals to you, you think it’s likely to continue to . You decide to buy exposure to £10,000 worth of Sage using a CFD, at the current price 619p (at time of writing). To do this, you need £2,000.
Let’s assume the Sage trend continues upwards to 676p August highs (+9.2%). Your profit would be £920, 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. Sage 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.