Will United Utilities turn, or will it continue beyond 830p 2018 high?

• The chart shows the United Utilities price action since mid-October.
• Shares in a 3-week uptrend from 674p October lows; now at 762p.
• Shares -7.9% from 2018 highs; +17.9% from 2018 lows; -8.2% year-to-date.
• Defensive utility stocks like United Utilities are benfitting from the risk-off sentiment on the UK Index at the end of the trading week.
• Company pays a hefty 5.3% projected dividend, attracting traders interested in high-yielding investments.
• The shares have risen close to 10% in the past 5 weeks. Will this momentum continue?
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading United Utilities – 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 United Utilities using a CFD, at the current price of 762p. To do this, you need £2,000.

Let’s assume United Utilities trend continues to the 830p (+8.9%). Your profit would be £890, 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. United Utilities 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.