Will Cranswick turn, or will it continue to rise beyond 3050p?

• The chart shows the last 5.5 months price action for Cranswick
• The shares have broken above a resistance trendline at 3000p to trade 3056p (at time of writing).
• The ‘trend is your friend’. Will it continue?
• Shares -12.8% from 2018 highs; +12.1% from 2018 lows; -8.5% year-to-date.
• Cranswick is a British supplier of fresh pork, sausages cook meats, pasty and sandwiches
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading Cranswick – 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 Cranswick using a CFD, at the current price 3050p (at time of writing). To do this, you need £2,000.

Let’s assume the Cranswick trend continues upwards to 3520p (+15.4%). Your profit would be £1540, 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. Cranswick 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.