Will SSE turn, or will it continue to rise to November highs of 1213p?

• The chart shows the SSE price action since mid-November.
• Shares in an uptrend from 1050p Jan lows; now at 1144p.
• Shares -22.5.7% from 2018 highs; +9.5% from 2018 lows; +5.7% year-to-date.
• Shares +9.8% from recent lows. Will this upward momentum continue towards 1213p?
• 8 Jan: Goldman Sachs says Europe Utilities to get M&A boost in 2019
• 21 Dec: SSE to sell 50% of SSE Enterprise Telecoms for up to £380m, proceeds to cut debt
• 17 Dec: SSE abandons merger of SSE Energy Services and Innogy’s Npower; options include de-merger or sale
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading SSE – 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 SSE using a CFD, at the current price of 1144p. To do this, you need £2,000.

Let’s assume SSE trend continues to November highs of 1213p (+6.0%). Your profit would be £600, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. SSE falls 3% and hits your stop-loss. Your loss would be £300.

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