Is this breakout a good trade for you?
Will Unilever turn, or will it continue to rise to Dec highs of 4379p?
- Double breakout above 4054 and 4079p to trade 4121p (at time of writing).
- The ‘trend is your friend’. Will it continue towards 4379p?
- Shares -9.7% from 2018 highs; +10.5% from 2018 lows; +0.3% year-to-date.
- 4 Feb: Jefferies says results aren’t as bad as they look
- 1 Feb: Berenberg says guidance disappoints, but it remains a leader
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Unilever – An Example
Let’s say the breakout appeals to you, you think it’s likely to continue to 4379p . You decide to buy exposure to £10,000 worth of Unilever using a CFD, at the current price 4121p (at time of writing). To do this, you need £2,000.
Let’s assume the Unilever trend continues upwards to 4379p Dec highs (+6.3%). Your profit would be £630, 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. Unilever 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.