Will IWG turn, or will it continue to rise beyond 257p?

• The chart shows the last 3.5 months’ price action for IWG
• The shares have broken above a resistance line at 249.7p
• Now trading 257.6p (at time of writing).
• The ‘trend is your friend’. Will it continue?
• Shares -23.6% from 2018 highs; +25.8% from 2018 lows; 0.0% year-to-date.
• 6 Nov: IWG says on track for 2018 guidance after improved 3Q growth
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading IWG – 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 IWG using a CFD, at the current price of 257.6p. To do this, you need £2,000.

Let’s assume the IWG trend continues upwards to 305p late-July highs (+18.4%). Your profit would be £1840, 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. IWG 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.