Is this trend a good trading opportunity?
Will Aston Martin turn, or will it continue to rise to 1366p highs?
- Shares +20% in a week; +30% from May lows;
- Pause after breakout at 986p; Bullish flag pattern?
- Now 1026p (at the time of writing).
- Will the positive momentum take them back to 1366p highs?
- Shares -25.4% from 2019 highs; +29.9% from 2019 lows; -16.1% year-to-date
- 5 Jun: Redburn starts coverage with a Buy rating
- 15 May: Aston Martin backs FY sales targets
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Aston Martin – 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 Aston Martin using a CFD, at the current price of 1026p. To do this, you need £2,000.
Let’s assume the Aston Martin trend continues to 1366p highs (+33%). Your profit would be £3,300, 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. Aston Martin falls 5% and hits your stop-loss. Your loss would be £500.
This is provided for information purposes only. It should not be taken as a recommendation.