Diploma
A trading opportunity for you?
Will Diploma break support, or will it rise again back to 1407p November highs?
- Diploma has rising support since February.
- Now trading at 1234p (at time of writing)
- Will the pattern repeat itself, bouncing up again towards 1407p November highs?
- Shares -16.5% from 2018 highs; +19.15% from 2018 lows; -1% year-to-date
- Diploma makes specialized products for healthcare and environmental industries.
- 19 Nov: Company reported pre-tax profit +8.8% YoY
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Diploma – An Example
Let’s say you like the range, you think it’s heading back towards 1407p again. You decide to buy exposure to £10,000 worth of Diploma using a CFD, at the current price of 1234p. To do this, you need £2,000.
Let’s assume Diploma recovers back to 1407p November highs (+14%). Your profit would be £1400, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 6% from the current price. Diploma falls 6% and hits your stop-loss. Your loss would be £600.
This is provided for information purposes only. It should not be taken as a recommendation.