Ashmore
Is this trend a good trading opportunity?
Will Ashmore turn, or will it continue to rise beyond 430p April highs?
- The chart shows Ashmore price action over the last 3 weeks.
- Shares in a 2-week uptrend from 337p November lows; now at 388p.
- Ashmore is an asset management firm that focuses on emerging markets.
- 12 Oct: Ashmore’s assets under management rose 3% to $76.4 billion over the previous quarter.
- Shares -15% from 2018 highs; +13.6% from 2018 lows; -4.3% year-to-date
- In the last 2 weeks, the shares have risen by over 12%. Will this momentum continue?
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Ashmore – 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 Ashmore using a CFD, at the current price of 388p. To do this, you need £2,000.
Let’s assume Ashmore trend continues to 430p April highs (+10.8%). Your profit would be £1080, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price. Ashmore falls 4% and hits your stop-loss. Your loss would be £400.
This is provided for information purposes only. It should not be taken as a recommendation.