Will Hargreaves turn, or will it continue to rise beyond 1970p?

• The chart shows the price action for Hargreaves Lansdown since August .
• The shares have broken above a resistance trendline at 1941p to trade 1970p (at time of writing).
• The ‘trend is your friend’. Will it continue?
• Shares -15.3% from 2018 highs; +21.2% from 2018 lows; +9.2% year-to-date.
• 11 Oct: Peel Hunt says Hargreaves Lansdown can ignore short-term pain
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Hargreaves Lansdown– 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 Hargreaves using a CFD, at the current price 1970p (at time of writing). To do this, you need £2,000.

Let’s assume the Hargreaves trend continues upwards to 2275p September highs (+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. Hargreaves 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.