NMC Health
Is this breakout a good trade for you?
Will NMC Health turn, or will it continue to rise beyond 3,984p September highs?
- The chart shows the last 3 weeks’ price action for NMC Health.
- The shares have broken above dual resistance:
- Falling highs resistance level around 3,193p and horizontal resistance at 3,228p.
- Currently trading at 3,302p (at time of writing).
- The ‘trend is your friend’. Will it continue?
- On 22 Oct, NMC Health upgraded its guidance thanks to strong H2 organic growth, initiating a share price breakout.
- FY revenue now expected +24% YoY (vs +22% prev.), EBITDA +35.8% YoY (vs +31.6% prev.).
- Shares -30.8% from 2018 highs; +6.2% from 2018 lows; +14.6% year-to-date.
- Source: Bloomberg, FT, Reuters, DJ Newswires
Trading NMC Health – An Example
Let’s say the breakout appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of NMC Health using a CFD, at the current price of 3,302p. To do this, you need £2,000.
Let’s assume the NMC Health trend continues to 3,984p September highs (+20.6%). Your profit would be £2,060, 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. NMC Health breaks lower, falling 10% and it 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.