Will Indivior turn, or will it continue to rise beyond 225p?

• The chart shows the last 2.5 month’s price action for Indivior
• The shares have broken above a resistance level at 218p trade 222.5p (at time of writing).
• The ‘trend is your friend’. Will it continue?
• Shares -58% from 2018 highs; +25.2% from 2018 lows; -45.8% year-to-date.
• 2 Nov: Jefferies says Indivior’s Suboxone sales ahead of expectations
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading Indivior – 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 Indivior using a CFD, at the current price 222.5p (at time of writing). To do this, you need £2,000.

Let’s assume the Indivior trend continues upwards to 275p (+23.6%). Your profit would be £2360, 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. Indivior 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.