Weir Group
Is this breakout a good trade for you?
Will Weir Group turn, or will it continue to towards 1800p?
- Breakout above resistance at 1445p to trade 1470p (at time of writing).
- The ‘trend is your friend’. Will it continue towards 1800p?
- Shares -36.8% from 2018 highs; +20.6% from 2018 lows; +13.3% year-to-date.
- 6 Nov: Weir shares rise as Q3 orders increase by 16%
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Weir Group – An Example
Let’s say the breakout appeals to you, you think it’s likely to continue towards 1800p. You decide to buy exposure to £10,000 worth of Weir using a CFD, at the current price of 1470p. To do this, you need £2,000.
Let’s assume the Weir trend continues upwards to 1800p (+22.4%). Your profit would be £2240, 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. Weir 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.