Smith & Nephew
A trading opportunity for you?
Will Smith & Nephew break support, or will it rise again back to 1523p highs?
- Smith & Nephew has horizontal support
- Bounced 4 times from 1412p
- Now trading 1438p (at time of writing).
- Will the pattern repeat itself, with the shares revisiting recent highs?
- Shares -8% from 2018 highs; +21.5% from 2018 lows; +11.8% year-to-date.
- Smith & Nephew is a defensive non-cyclical company manufacturing orthopedic devices
- 18 Dec: Agreed to acquire Ceterix Orthopaedic for $50m
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Smith & Nephew – An Example
Let’s say you like the Smith & Nephew, you think it’s heading back towards 1523p again. You decide to buy exposure to £10,000 worth of Smith & Nephew using a CFD, at the current price of 1438p. To do this, you need £2,000.
Let’s assume Smith & Nephew rises back to 1523p (+5.9%). Your profit would be £590, 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.