Smith & Nephew
Is this breakout a good trade for you?
Will Smith & Nephew turn, or will it continue to rise towards 1700p?
- Breakout to fresh all time highs of 1588p (at time of writing).
- Could the breakout see the shares rally to 1700p?
- Shares -0.6% from 2019 highs; +14.9% from 2019 lows; +8.6% year-to-date
- 2 May: Shares rise after positive guidance update
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Smith & Nephew – An Example
Let’s say the breakout appeals to you, you think it’s likely to continue towards 1700p. You decide to buy exposure to £10,000 worth of Smith & Nephew using a CFD, at the current price of 1588p. To do this, you need £2,000.
Let’s assume the Smith & Nephew trend continues to highs of 1700p (+7%). Your profit would be £700, 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. Smith & Nephew 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.