Will Standard Chartered turn, or will it continue to rise beyond 587p?

• The chart shows the last 6 weeks’ price action for Standard Chartered.
• The shares have broken above recent highs of 565p
• Shares trading 587.5p (at time of writing).
• The ‘trend is your friend’. Will it continue?
• Shares -35.5% from 2018 highs; +8.3% from 2018 lows; -24.7% year-to-date.
• UK Index Bank with exposure to faster growing Asia
• 1 Nov: Goldman Sachs says cost beat buoys Q3 results
• 31 Oct: Goodbody says StanChart shares boosted by new returns target
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading Standard Chartered – 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 Standard Chartered using a CFD, at the current price of 587p. To do this, you need £2,000.

Let’s assume the Standard Chartered trend continues to 648p end-Sept highs (+10.4%). Your profit would be £1040, 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. Standard Chartered breaks lower, falling 4% and it hits your stop-loss. Your loss would be £400.

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