Is this trend a good trading opportunity?

Will Greencore turn, or will it continue to rise to January high of 233p?

• The chart shows the Greencore price action over the past 3 weeks.
• Shares in a 7-month uptrend from 120p March lows; now at 208p.
• Shares -14.3% from 2018 highs; +66.9% from 2018 lows; -9.4% year-to-date
• In the last 3 weeks, the shares have risen over 17.5%. Will this momentum continue?
• The FT earlier mentioned speculation of Private Equity interest in buying Greencore or its US division.

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Trading Greencore – 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 Greencore using a CFD, at the current price of 208p. To do this, you need £2,000.

Let’s assume Greencore trend continues to Jan 233p highs (+12%). Your profit would be £1,200, 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. Greencore 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.