Is this trend a good trading opportunity?

Will Diageo turn, or will it maintain momentum beyond 2750p?

• The chart shows Diageo price action since mid-July.
• Shares +6.0% since September lows.
• Will momentum continue towards July highs of 2885p?
• Shares -4.7% from 2018 highs; +17.2% from 2018 lows; +1% year-to-date
• Currently trading at 2750p (as of the time of writing).
• Beverages considered both defensive in times of uncertainty and a beneficiary of global growth

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Trading Diageo – An Example

Let’s say the trend appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of Diageo using a CFD, at the current price of 2750p. To do this, you need £2,000.

Let’s assume Diageo trend continues to July highs of 2885p (+6.0%). Your profit would be £600, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% below the current price. Diageo 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.