Will Aston Martin turn, or will it continue beyond IPO opening price of 1810p?

• The chart shows the Aston Martin price action since its IPO in early October.
• Shares in a 2-week uptrend from 1364p October lows; now at 1659p.
• Shares -13.3% from 2018 highs; +21.6% from 2018 lows.
• Aston Martin will announce its Q3 financial results on 15 Nov 2018.
• The shares have risen over 21% in the past 2 weeks. Will this momentum continue?
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading Aston Martin – 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 Aston Martin using a CFD, at the current price of 1659p. To do this, you need £2,000.

Let’s assume Aston Martin trend continues to the IPO opening price of 1810p (+9.1%). Your profit would be £910, 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. Aston Martin 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.