Will Go-Ahead turn, or will it continue to rise beyond 1713p?

• The chart shows the price action for Go-Ahead since June.
• The shares have broken above a resistance trendline at 1697p to trade 1713p (at time of writing).
• The ‘trend is your friend’. Will it continue?
• Shares -17.4% from 2018 highs; +26.4% from 2018 lows; +15.0% year-to-date.
• 11 Oct: Citi says Go-Ahead on track as Govia problems ease
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Go-Ahead – 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 Go-Ahead using a CFD, at the current price 1713p (at time of writing). To do this, you need £2,000.

Let’s assume the Go-Ahead trend continues upwards to 1910p Sept highs (+11.5%). Your profit would be £1150, 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. Go-Ahead 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.