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Home / Breakouts / Serco

This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.

Serco

Is this breakout a good trade for you?

Will Serco turn, or will it continue to rise beyond 104p October highs?

  • The chart shows price action for Serco since mid-October
  • The shares have broken above a falling highs resistance level around 91p to trade 98p (at time of writing).
  • Shares up more than 10% today. The ‘trend is your friend’. Will it continue?
  • Outsourcing company upgraded its earnings guidance after lower-than-expected tax bill.
  • Said FY earnings per share are now expected 5-10% above market consensus.
  • 13 Dec: Brokers at Jefferies is expecting a return to revenue growth for the first time in five years in 2019.
  • Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Serco – 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 Serco using a CFD, at the current price of 98p. To do this, you need £2,000.

Let’s assume the Serco trend continues to 104p October highs (+6.1%). Your profit would be £610, 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. Serco 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.

This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.


Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
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