Is this breakout a good trade for you?
Will St Modwen turn, or will it continue to rise beyond 403p?
- The chart shows the price action for St Modwen since June.
- The shares have broken above a resistance trendline at 399p to trade 403p (at time of writing).
- The ‘trend is your friend’. Will it continue?
- Shares -9.6% from 2018 highs; +8.9% from 2018 lows; -0.7% year-to-date.
- St Modwen is a property investment and development business specialising in regeneration and remediation of brownfield land and urban environments.
- 4 Dec: Liberum says St. Modwen has significant opportunity in regional real estate
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading St Modwen – An Example
Let’s say the breakout appeals to you, you think it’s likely to continue to 429p. You decide to buy exposure to £10,000 worth of St Modwen using a CFD, at the current price 403p (at time of writing). To do this, you need £2,000.
Let’s assume the St Modwen trend continues upwards to 429p June highs (+6.5%). Your profit would be £650, 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. St Modwen 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.