Ashtead
Is this trend a good trading opportunity?
Will Ashtead turn, or will it continue to rise to 2400p highs (+10.8%)?
- Shares +11% from recent lows; Rising channel
- Now 2164p (at the time of writing).
- Will the positive momentum take them back to 2400p highs (+10.8%)?
- Shares -2.2% from 2019 highs; +36.5% from 2019 lows; +32.2% year-to-date
- 18 Jun: Shares higher after good reuslts and optimism about US economy/Fed stimulus
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Ashtead – 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 Ashtead using a CFD, at the current price of 2164p. To do this, you need £2,000.
Let’s assume the Ashtead trend continues to 2400p 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 3% from the current price. Ashtead falls 3% and hits your stop-loss. Your loss would be £300.
This is provided for information purposes only. It should not be taken as a recommendation.