UDG Healthcare
A trading opportunity for you?
Will UDG Healthcare break support, or will it rise again back to 699p September highs?
- UDG Healthcare has bounced off August 2016 support level around 612p
- Bounced 6 times, currently nearing the support zone once again.
- Now trading 620p (at time of writing)
- Will the pattern repeat itself, bouncing up again towards 699p recent highs?
- According to analysts at Jefferies (9 Aug), fears over UDG Healthcare business are overblown and negative market reaction represents a buying opportunity for investors.
- Shares -34.6% from 2018 highs; currently trading at 2018 lows; -26.6% year-to date
- Source: Bloomberg, FT, Reuters, DJ Newswires
Trading UDG Healthcare – An Example
Let’s say you like the UDG Healthcare trend, you think it’s heading back towards 699p again. You decide to buy exposure to £10,000 worth of UDG Healthcare using a CFD, at the current price of 620p. To do this, you need £2,000.
Let’s assume UDG Healthcare recovers back to 699p (+12.7%). Your profit would be £1,270, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss 9% below the current price. UDG Healthcare falls 9% and hits your stop-loss. Your loss would be £900.
This is provided for information purposes only. It should not be taken as a recommendation.