Is this trend a good trading opportunity?
Will Johnson Matthey turn, or will it continue to rise towards 2018 highs of 3800p?
- Shares +30%+ from December lows; Breakout above 3200p
- Now trading 3327p (at time of writing);
- Will the positive momentum continue towards last year’s highs of 3800p?
- Shares -1% from 2019 highs; +30% from 2019 lows; Flat year-to-date
- 4th April. “Rhodium demand (used in catalytic converters) will reamin strong” say Johnson Matthey
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Johnson Matthey – 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 Johnson Matthey using a CFD, at the current price of 3325p. To do this, you need £2,000.
Let’s assume the Johnson Matthey trend continues to 2018 highs around 3800p (+12%). Your profit would be £1200, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 7% from the current price. Johnson Matthey falls 7% and hits your stop-loss. Your loss would be £700.
This is provided for information purposes only. It should not be taken as a recommendation.