Is this trend a good trading opportunity?
Will Auto Trader turn, or will it continue to rise to 650p new all-time highs?
- Shares +25% since March lows to record highs
- Now trading 578p (at the time of writing)
- Will the positive momentum continue to 650p?
- Shares -1% from 2019 highs; +33.6% from 2019 lows; +27.1% year-to-date.
- 29 Apr: Auto Trader’s Choice of New CEO is Good Move – Peel Hunt
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Auto Trader – 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 Auto Trader using a CFD, at the current price of 578p. To do this, you need £2,000.
Let’s assume the Auto Trader trend continues to 650p (+12.4%). Your profit would be £1240, 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. Auto Trader 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.