Is this trend a good trading opportunity?

Will Man Group turn, or will it continue to fall to March lows of 132p?

• The chart shows the Man Group price action over the past month.
• Shares in a month-long downtrend from 183p September highs; now at 138p.
• Shares -36% from 2018 highs; +2.5% from 2018 lows; -33% year-to-date
• Shares of bank and financial companies (like Man Group) have been trending lower recently amidst global risk off sentiment.
• In the last 3 weeks, the shares have fallen over 24%. Will this momentum continue?

Click to enlarge

Trading Man Group – 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 Man Group using a CFD, at the current price of 5,900p. To do this, you need £2,000.

Let’s assume Man Group trend continues to 183p September highs (+32.6%). Your profit would be £3.260, 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. Man Group falls 10% and hits your stop-loss. Your loss would be £1,000.

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