A trading opportunity for you?
Will Pennon break support, or will it rise again back to 781p?
- Pennon has a rising support zone since early October
- 3 bounces, most recently today .
- Now trading 704p (at time of writing).
- Will the pattern repeat itself? Will the shares bounce off support again?
- Shares -12.8% from 2018 highs; +23.1% from 2018 lows; -9.4% year-to-date.
- Pennon is a British water and environmental utility infrastructure
- 27 Nov: First half pretax profit +2.9%, guidance reiterated
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Pennon – An Example
Let’s say you like the Pennon chart and you think the price is heading back towards 781p again. You decide to buy exposure to £10,000 worth of Pennon using a CFD, at the current price of 704p. To do this, you need £2,000.
Let’s assume Pennon rises back to 781p (+10.9%). Your profit would be £1090, 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. Pennon 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.