Is this breakout a good trade for you?
Will Taylor Wimpey turn, or will it continue to rise towards 205p?
- Breakout above 186.3p to trade fresh 11 month highs
- Now trading 189p (at time of writing).
- Shares -0.3% from 2019 highs; +41.2% from 2019 lows; +38.9% year-to-date
- Housebuilder shares benefiting from delayed Brexit
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Taylor Wimpey – An Example
Let’s say the breakout appeals to you, you think it’s likely to continue towards 205p. You decide to buy exposure to £10,000 worth of Taylor Wimpey using a CFD, at the current price of 189p. To do this, you need £2,000.
Let’s assume the Taylor Wimpey trend continues to highs of 205p (+8.4%). Your profit would be £840, 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. Taylor Wimpey 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.