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Home / Momentum / Sophos

This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.

Sophos

Is this trend a good trading opportunity?

Will Sophos turn, or will it continue to fall beyond 434p?

  • The chart shows the Sophos price action over the past 2 weeks.
  • Shares in a week-long downtrend from 506p October highs; now at 441.5p.
  • Shares -32.7% from 2018 highs; +13.6% from 2018 lows; -22.6% year-to-date
  • In the past week weeks, the shares have fallen 10%. Will this negative momentum continue?
  • Sophos was recently downgraded to Hold by Deutsche Bank (17 Sept), with the target price cut to 530p (from 630p).

Click to enlarge

Trading Sophos – An Example

Let’s say the trend appeals to you, you think it’s likely to continue. You decide to sell exposure to £10,000 worth of Sophos using a CFD, at the current price of 441.5p. To do this, you need £2,000.

Let’s assume the Sophos trend continues to 2018 low of 399.8p (-9.4%). Your profit would be £940, 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. Sophos shares rise 5% and hit your stop-loss. Your loss would be £500.

This is provided for information purposes only. It should not be taken as a recommendation.

This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.


Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance.

Prepared by Michael van Dulken, Head of Research
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
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