Is this trend a good trading opportunity?
Will Persimmon turn, or will it continue to rise to October high of 2450p?
- The chart shows the Persimmon price action since late October.
- Shares in a 3-week uptrend from 1838p lows; now at 2206p.
- Shares -2% from 2019 highs; +11.5% from 2019 lows; +14.25% year-to-date.
- 9 Jan: FTSE Housebuilders are rallying following positive results from peer Taylow Wimpey
- In the past week, the shares have risen over 13%. Will this momentum continue?
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Persimmon – 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 Persimmon using a CFD, at the current price of 2206p. To do this, you need £2,000.
Let’s assume Persimmon trend continues to October high of 2450p (+11%). Your profit would be £1100, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Persimmon falls 5% and hits your stop-loss. Your loss would be £500.
This is provided for information purposes only. It should not be taken as a recommendation.