Is this breakout a good trade for you?
Will Spirax Sarco turn, or will it continue to rise towards 10,000p?
- Breakout from bullish flag pattern above
- Now trading 8,442p (at time of writing).
- Could they rise to fresh record highs of 10,000p?
- Shares -0.6% from 2019 highs; +42.2% from 2019 lows; +35.3% year-to-date
- 7 Mar: Dividend increased by 15% after full year results
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Spirax Sarco – An Example
Let’s say the breakout appeals to you, you think it’s likely to continue towards 10,000p. You decide to buy exposure to £10,000 worth of Spirax Sarco using a CFD, at the current price of 8,442p. To do this, you need £2,000.
Let’s assume the Spirax Sarco trend continues to new record highs of 10,000p (+18%). Your profit would be £1800, 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. Spirax Sarco 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.