Will Spirax-Sarco turn, or will it continue to rise beyond 6760p?

• The chart shows the last 6 week’s price action for Spirax-Sarco.
• The shares have broken above a resistance level at 6680p to trade 6760p (at time of writing).
• The ‘trend is your friend’. Will it continue?
• Shares -11.2% from 2018 highs; +22.7% from 2018 lows; +20.1% year-to-date.
• Spirax-Sarco is an Industrial Engineering company
• 15 Nov: Organic sales growth improved in second half
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading Spirax-Sarco – 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 Spirax-Sarco using a CFD, at the current price 6760p (at time of writing). To do this, you need £2,000.

Let’s assume the Spirax-Sarco trend continues upwards to 7397p (+9.4%). Your profit would be £940, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Spirax-Sarco breaks lower, falling 3% and it hits your stop-loss. Your loss would be £300.

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