Is this trend a good trading opportunity?
Will AstraZeneca turn, or will it continue to rise to 6088p Jan highs?
- Shares +8.2% since late January.
- 5 Feb: US FDA issued fast-track status to AstraZeneca’s new respiratory treatment
- Now trading 5708p (at the time of writing).
- Will the positive momentum continue towards 6088p?
- Shares -6.5% from 2019 highs; +7% from 2019 lows; -2.9% year-to-date.
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading AstraZeneca – 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 AstraZeneca using a CFD, at the current price of 5708p. To do this, you need £2,000.
Let’s assume the AstraZeneca trend continues to 6088p Jan highs (+6.6%). Your profit would be £660, 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. AstraZeneca 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.