Is this breakout a good trade for you?

Will Barratt Developments turn, or will it continue to break upwards beyond 572p?

• The chart shows this month’s price action.
• It has recently broken above the key 561p level.
• The ‘trend is your friend’. Will it continue?
• UK Housebuilders are lobbying for an extension of the Government’s Help to Buy scheme
• On 5 Sept the company said it was weighing up buybacks to tackle the gap between business performance and share-price performance

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Trading Barratt Developments – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of Barratt Developments using a CFD, at the current price of 572p. To do this, you need £2,000.

Let’s assume Barratt Developments’s trend continues to 600p. Your profit would be £490, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price, at 560p. Barratt Developments trend breaks down, falling 2% and it hits your stop-loss. Your loss would be £200.

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