Sage
Is this breakout a good trade for you?
Will Sage turn, or will it continue to rise towards 825p?
- Breakout above 717p; Now trading 735p (at time of writing).
- Could they recover to prior highs of 825p?
- Shares -0.4% from 2019 highs; +28.4% from 2019 lows; +22.1% year-to-date
- 4 Apr: Sage can pursue M&A says Citigroup
- 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 towards 825p. You decide to buy exposure to £10,000 worth of Sage using a CFD, at the current price of 735p. To do this, you need £2,000.
Let’s assume the Sage trend continues to highs of 825p (+12.2%). Your profit would be £1220, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price. Sage breaks lower, falling 4% and it hits your stop-loss. Your loss would be £400.
This is provided for information purposes only. It should not be taken as a recommendation.