Is this trend a good trading opportunity?

Will Saga turn, or will it continue to rise beyond 141p year’s high?

• The chart shows the Saga price action since mid-August.
• Shares in a 7-week uptrend from 117p August lows; now at 137p.
• Saga recently reported (27 Sept) 3.2% higher pre-tax profit for the first half of 2018 thanks to FX tailwinds and oil price derivatives.
• Shares just 2.3% away from 2018 highs; +27.8% from 2018 lows; +9.4% year-to-date
• Shares have jumped +8.5% in the last 3 weeks. Will this momentum continue?

Click to enlarge

Trading Saga – 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 Saga using a CFD, at the current price of 137p. To do this, you need £2,000.

Let’s assume the Saga trend continues to 187p December 2017 high (+36.5%). Your profit would be £3,650, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 10% from the current price. Saga shares fall 10% and hit your stop-loss. Your loss would be £1,000.

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