Is this trend a good trading opportunity?

Will Paddy Power Betfair turn, or will it continue to rise to September highs of 7,122p?

• The chart shows the Paddy Power Betfair price action over the past month.
• Shares in a weeklong uptrend from 6,000p October lows; now at 6,647p.
• Shares -28.4% from 2018 highs; +9.5% from 2018 lows; -24.7% year-to-date.
• Company recently launched a £300m share buyback programme.
• In the last week, the shares have risen over 7%. 
• ‘The trend is your friend’. Will this momentum continue?

Click to enlarge

Trading Paddy Power Betfair – 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 Paddy Power Betfair using a CFD, at the current price of 6,647p. To do this, you need £2,000.

Let’s assume Paddy Power Betfair trend continues to 7,122p September highs (+7.1%). Your profit would be £710, 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. Paddy Power Betfair rises 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.