A trading opportunity for you?
Will Johnson Matthey break support, or will it rise again to 3137p?
- Support zone around 2945p .
- 4 bounces off support zone since mid-January
- Now trading 2991p (at time of writing).
- Will the pattern repeat, the shares climbing back towards 3137p?
- Shares -5.8% from 2019 highs; +11.3% from 2019 lows; +6.9% year-to-date.
- 14 Jan: Brokers at Redburn upgraded Johnson Matthey to “Buy”/
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Johnson Matthey – An Example
Let’s say you like the Johnson Matthey chart and you think the price is heading back towards 3137p again. You decide to buy exposure to £10,000 worth of Johnson Matthey using a CFD, at the current price of 2991p. To do this, you need £2,000.
Let’s assume Johnson Matthey rises back to 3137p last week’s highs (+4.9%). Your profit would be £490, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price. Johnson Matthey falls 2% and hits your stop-loss. Your loss would be £200.
This is provided for information purposes only. It should not be taken as a recommendation.