Is this breakout a good trade for you?
Will Telecom Plus turn, or will it continue to rise beyond 1389p?
- The chart shows the price action for Telecom Plus over the last 5 yrs.
- The shares have broken above a resistance trendline at 1270p to trade 4yr highs.
- The shares are currently 1389p (at time of writing).
- The ‘trend is your friend’. Will it continue?
- Shares -1.3% from 2018 highs; +38.1% from 2018 lows; +15.7% year-to-date.
- Telecom Plus is a telecom and utilities company
- 20 Nov: Peel Hunt says market conditions moving in Telecom Plus’s favour; first half profits rise
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Telecom Plus – An Example
Let’s say the breakout appeals to you, you think it’s likely to continue to 1911p. You decide to buy exposure to £10,000 worth of Telecom Plus using a CFD, at the current price 1389p (at time of writing). To do this, you need £2,000.
Let’s assume the Telecom Plus trend continues upwards to 1911p (+37.6%). Your profit would be £3760, 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. Telecom Plus 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.