Is this trend a good trading opportunity?
Will Genus turn, or will it continue to rise to 2599p mid-Sept highs?
- Shares +12.9% in less than 2 weeks.
- 28 Feb: Animal-genetics company reported results in-line with expectations.
- Now trading 2406p (at the time of writing).
- Will the positive momentum continue to 2599p mid-Sept highs?
- Shares -0.6% from 2019 highs; +13.4% from 2019 lows; +12.1% year-to-date.
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Genus – 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 Genus using a CFD, at the current price of 2406p. To do this, you need £2,000.
Let’s assume the Genus trend continues to 2599p mid-Sept highs (+8%). Your profit would be £800, 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. Genus 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.