Is this trend a good trading opportunity?
Will Cobham turn, or will it continue to rise towards highs of 123p (+7.8%)?
- Shares +10% from recent lows; +17% from May lows
- Now 114p (at the time of writing).
- Will the positive momentum take them to 123p highs (+7.8%)?
- Shares -8.8% from 2019 highs; +18.4% from 2019 lows; +16.8% year-to-date.
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Cobham – 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 Cobham using a CFD, at the current price of 123p. To do this, you need £2,000.
Let’s assume the Cobham trend continues to highs of 123p (+7.8%). Your profit would be £780, 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. Cobham 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.