Is this trend a good trading opportunity?

Will Sophos turn, or will it continue to rise to September highs of 543p?

• The chart shows the Sophos price action over the past month.
• Shares in a weeklong uptrend from 407p October lows; now at 492p.
• Shares -29.9% from 2018 highs; +18.5% from 2018 lows; -13.6% year-to-date.
• According to brokerage Jefferies (10 Oct), Sophos is offering attractive rewards for investors willing to take a risk and that management is executing a clear strategy to support long-term growth.
• In the last week, the shares have risen close to 14%. Will this momentum continue?

Click to enlarge

Trading Sophos – 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 Sophos using a CFD, at the current price of 492p. To do this, you need £2,000.

Let’s assume Sophos trend continues to 543p September highs (+10.3%). Your profit would be £1,030, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 8% from the current price. Sophos rises 8% and hits your stop-loss. Your loss would be £800.

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