Is this trend a good trading opportunity?
Will 3i turn, or will it continue to rise to 964p Sept highs?
- Shares +22% since Christmas.
- 31 Jan: Investment company reported 13.9% total return in the first 9-months.
- Now trading 920p (at the time of writing).
- Will the positive momentum continue towards 964p?
- Shares trading at 2019 highs; +20.6% from 2019 lows; +18.9% year-to-date.
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading 3i – An Example
Let’s say the trend appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of 3i using a CFD, at the current price of 920p. To do this, you need £2,000.
Let’s assume the 3i trend continues to 964p Jan highs (+4.7%). Your profit would be £470, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price. 3i falls 2% and hits your stop-loss. Your loss would be £200.
This is provided for information purposes only. It should not be taken as a recommendation.