Will Grainger break support, or will it rise again back to 236p highs?

• Grainger has support at 204p since 10 Dec with 4 bounces, most recently last week
• Now trading 209p (at time of writing).
• Will the pattern repeat itself, with the shares bouncing off support again?
• Shares -29% from 2018 highs; +1.9% from 2018 lows; -0.1% year-to-date.
• 18 Dec: Grainger to acquire rental development in Birmingham for £77m
• 29 Nov: S&P upgrades Grainger credit rating to ‘BB+’; Outlook Stable
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Grainger – An Example

Let’s say you like the Grainger chart and you think the price is heading back towards 236p again. You decide to buy exposure to £10,000 worth of Grainger using a CFD, at the current price of 209p. To do this, you need £2,000.

Let’s assume Grainger rises back to 236p highs (+12.9%). Your profit would be £1290, 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. Grainger 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.