Is this trend a good trading opportunity?

Will St James’s Place turn, or will it continue to fall to 896p November 2016 lows?

• The chart shows the St James’s Place price action over the past month.
• Shares in a month-long downtrend from 1155p October highs; now at 959p.
• Financial sector has been struggling in the recent sell-off, with investors preferring safer assets.
• St James’s Place also missed fund inflows market expectations in its latest Q3 update.
• Shares -23.1% from 2018 highs; +2.72% from 2018 lows; -25.4% year-to-date.
• In the past 4 weeks, the shares have fallen close to 17%. Will this momentum continue?
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading St James’s Place – 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 St James’s Place using a CFD, at the current price of 959p. To do this, you need £2,000.

Let’s assume St James’s Place trend continues to 896p November 2016 lows (-6.5%). Your profit would be £650, 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. St James’s Place rises 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.