Is this trend a good trading opportunity?

Will Telecom Plus turn, or will it continue to rise to February high of 1288p?

• The chart shows the Telecom Plus price action since mid-September.
• Shares in a 2-month uptrend from 998p lows; now at 1198p.
• Shares -7.9% from 2018 highs; +19.6% from 2018 lows; -0.25% year-to-date.
• Peel Hunt, 9 Oct: Telecom Plus’s business model should thrive in the new environment as the UK readies to cap energy prices later this year.
• In the past 5 weeks, the shares have risen close to 20%. Will this momentum continue?
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading Telecom Plus – 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 Telecom Plus using a CFD, at the current price of 1198p. To do this, you need £2,000.

Let’s assume Telecom Plus trend continues to February high of 1288p (+7.5%). Your profit would be £750, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price. Telecom Plus falls 4% and hits your stop-loss. Your loss would be £400.

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