A trading opportunity for you?

Will Sophos break support, or will it rise again back to 545p highs?

• Sophos has a support zone around 411p since March, having bounced 3 bounces
• Now trading 426.6p (at time of writing).
• Shares -37% from 2018 highs; +6.4% from 2018 lows; -25.3% year-to-date.
• 10 Oct: Jefferies says Sophos’ strategy supports growth
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading Sophos – An Example

Let’s say you like the Sophos chart and you think the price is heading back towards 545p again. You decide to buy exposure to £10,000 worth of Sophos using a CFD, at the current price of 426.6p. To do this, you need £2,000.

Let’s assume Sophos rises back to 545p (+27.8%). Your profit would be £2780, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Sophos falls 5% and hits your stop-loss. Your loss would be £500.

This is provided for information purposes only. It should not be taken as a recommendation.