Renishaw
Is this trend a good trading opportunity?
Will Renishaw turn, or will it continue to rise beyond 4864p?
- The chart shows Renishaw price action over the last 2 weeks.
- Shares in a 2-week uptrend from 3675p lows; now at 4474p.
- Renishaw makes precision measurement and process control equipment.
- 18 Oct: Company reported revenue +8% YoY and confidence in future growth.
- Shares -24.3% from 2018 highs; +21.9% from 2018 lows; -14.4% year-to-date
- In the last 2 weeks, the shares have risen by over 17%. Will this momentum continue?
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Renishaw – 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 Renishaw using a CFD, at the current price of 4474p. To do this, you need £2,000.
Let’s assume Renishaw trend continues to October highs of 4864p (+8.7%). Your profit would be £870, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price. Renishaw falls 4% and hits your stop-loss. Your loss would be £400.
This is provided for information purposes only. It should not be taken as a recommendation.