Spectris
Is this trend a good trading opportunity?
Will Spectris turn, or will it continue to rise beyond 2662p July highs?
- The chart shows Spectris price action over the last 3 weeks.
- Shares in a 3-week uptrend from 1988p lows; now at 2457p.
- Spectris manufactures measuring instruments for industrial applications.
- 20 Nov: Spectris reported strong sales in H2 2018, unveiled plans for a strategic review and intensified cost-cutting.
- Shares -15.6% from 2018 highs; +29.6% from 2018 lows; -1.15% year-to-date
- In the last 3 weeks, the shares have risen by over 23%. Will this momentum continue?
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Spectris – 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 Spectris using a CFD, at the current price of 2457p. To do this, you need £2,000.
Let’s assume Spectris trend continues to 2662p July highs (+8.3%). Your profit would be £830, 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. Spectris 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.