Is this trend a good trading opportunity?
Will Halma turn, or will it continue to rise to a fresh record high of 2100p?
- Shares +15% from May lows; +10% from June lows
- Now trading 1980p (at time of writing);
- Will the positive momentum continue to a fresh record of 2100p?
- Shares -0.1% from 2019 highs; +51.7% from 2019 lows; -45.5% year-to-date
- 11 Jun: Halma should be a household name says AJ Bell
- 11 Jun: Halma is a top company says Jefferies
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Halma – An Example
Let’s say the trend appeals to you, you think it’s likely to continue up to 2100p. You decide to buy exposure to £10,000 worth of Halma using a CFD, at the current price of 1980p. To do this, you need £2,000.
Let’s assume the Halma trend continues to highs of 2100p (+6%). Your profit would be £600, 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. Halma 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.