Is this trend a good trading opportunity?
Will Berkeley Group turn, or will it continue to rise to summer high of 4334p?
- The chart shows the Berkeley Group price action since mid-November.
- Shares in a 4-week uptrend from 3169p lows; now at 3574p.
- Shares -1% from 2019 highs; +5% from 2019 lows; +3% year-to-date.
- 7 Dec: Berkeley Group raised its profit guidance by more than 5% following resilient H1 trading.
- In the past 5 weeks, the shares have risen over 11%. Will this momentum continue?
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Berkeley Group – 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 Berkeley Group using a CFD, at the current price of 3574p. To do this, you need £2,000.
Let’s assume Berkeley Group trend continues to November high of 3731p (+4.4%). Your profit would be £440, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price. Berkeley Group falls 2% and hits your stop-loss. Your loss would be £200.
This is provided for information purposes only. It should not be taken as a recommendation.