Is this trend a good trading opportunity?
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
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.