Will Sage turn, or will it continue to rise beyond 608p?

• The chart shows the price action for Sage since August .
• The shares have broken above a resistance trendline at 593p to trade 608p (at time of writing).
• The ‘trend is your friend’. Will it continue?
• Shares -27.8% from 2018 highs; +21.4% from 2018 lows; -23.6% year-to-date.
• 21 Nov: Shore Capital says Sage makes progress in cloud transition ahead of investment
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Sage – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue to . You decide to buy exposure to £10,000 worth of Sage using a CFD, at the current price 608p (at time of writing). To do this, you need £2,000.

Let’s assume the Sage trend continues upwards to 676p August highs (+11.1%). Your profit would be £1110, 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. Sage 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.