Will Shire break support, or will it rise again back to 4779p 2018 highs?

• The Shire rising channel range has developed since May.
• Bounced off rising support 6 times, most recently yesterday.
• Currently trading 4523p (at time of writing)
• Will the pattern repeat itself, testing previous highs?
• Shares -5.75% from 2018 highs; +53.2% from 2018 lows; +15.8% year-to-date
• 30 Nov: Shire gets European marketing approval for Takhzyro treatment.
• 30 Nov: Shire (being acquired by Takeda) to be deleted from UK 100 on 2 Jan, replaced by highest ranking reserve constituent.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Shire – An Example

Let’s say you like the range, you think it’s heading back towards 4779p again. You decide to buy exposure to £10,000 worth of Shire using a CFD, at the current price of 4523p. To do this, you need £2,000.

Let’s assume Shire recovers back to 4779p 2018 highs (+5.6%). Your profit would be £560, 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. Shire falls 3% and hits your stop-loss. Your loss would be £300.

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