Is this breakout a good trade for you?
Will SSE turn, or will it continue to rise towards highs of 1163p?
- Breakout above 1116p; Now trading 1122p (at time of writing).
- Could they recover to highs of 1163p?
- Shares -9.4% from 2019 highs; +12.5% from 2019 lows; -3.8% year-to-date
- 22 May: SSE starts £100m share buyback
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading SSE – An Example
Let’s say the breakout appeals to you, you think it’s likely to continue towards 1163p. You decide to buy exposure to £10,000 worth of SSE using a CFD, at the current price of 1122p. To do this, you need £2,000.
Let’s assume the SSE trend continues to highs of 1163p (+3.6%). Your profit would be £360, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price. SSE breaks lower, falling 2% and it hits your stop-loss. Your loss would be £200.
This is provided for information purposes only. It should not be taken as a recommendation.