Will Aveva turn, or will it continue to fall beyond 2430p?

• The chart shows the price action for Aveva since 5 months
• The shares have broken below a support line at 2485p to trade 2431p (at time of writing).
• The ‘trend is your friend’. Will it continue?
• Will the shares fall back to May lows of 2265p?
• Shares -18.2% from 2018 highs; +40.8% from 2018 lows; -12.2% year-to-date.
• 20 Nov: Aveva H1 results boosted by Schneider Electric merger and improving Markets
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading Aveva – An Example

Let’s say the breakdown appeals to you, you think it’s likely to continue. You decide to sell exposure to £10,000 worth of Aveva using a CFD, at the current price of 2430p. To do this, you need £2,000.

Let’s assume the Aveva trend continues downwards to 2265p (-6.8%). Your profit would be £680, 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. Aveva rebounds, rising 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.