Will Smith & Nephew break support, or will it rise again back to 1549p highs?

• Smith & Nephew trades around twin support trendlines.
• Horizontal resistance-turned-support around 1412p zone.
• Rising support since early November, recording 4 bounces.
• Smith & Nephew is a defensive non-cyclical company manufacturing orthopedic devices
• 18 Dec: Agreed to acquire Ceterix Orthopaedic for $50m.
• Now trading 1443p (at time of writing).
• Shares -6.23% from 2018 highs; +23.8% from 2018 lows; +12.2% year-to-date.
• Will the pattern repeat itself, with the shares revisiting recent highs?
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Smith & Nephew – An Example

Let’s say you like the Smith & Nephew, you think it’s heading back towards 1549p again. You decide to buy exposure to £10,000 worth of Smith & Nephew using a CFD, at the current price of 1443p. To do this, you need £2,000.

Let’s assume Smith & Nephew rises back to 1549p (+7.3%). Your profit would be £730, 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. Smith & Nephew 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.