Is this breakout a good trade for you?

Will Barclays turn, or will it continue to rise beyond 171p?

• The chart shows the last 10 week’s price action for Barclays.
• The shares have broken out from a downtrend to trade at 170.6p (at time of writing).
• The ‘trend is your friend’. Will it continue?
• Shares -24.7% from 2018 highs; +2.8% from 2018 lows; -16.0% year-to-date.
• Barclays published positive Q3 results this morning
• 24 Oct: Jefferies says Barclays looks undervalued after beating 3Q forecasts
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading Barclays– 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 Barclays using a CFD, at the current price of 170.6p. To do this, you need £2,000.

Let’s assume the Barclays trend continues to 196.6p August highs (+15.2%). Your profit would be £1520, 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. Barclays breaks lower, falling 5% and it hits your stop-loss. Your loss would be £500.

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