Will FirstGroup turn, or will it continue to rise beyond 91p?

• The chart shows the price action for FirstGroup since June.
• The shares have broken above a resistance trendline at 89p to trade 91p (at time of writing).
• The ‘trend is your friend’. Will it continue?
• Shares -25.1% from 2018 highs; +17.7% from 2018 lows; -17.7% year-to-date.
• 13 Nov: Reiterates FY guidance, sees stable operating earnings, Greyhound review complete, New CEO
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading FirstGroup – 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 FirstGroup using a CFD, at the current price 91p (at time of writing). To do this, you need £2,000.

Let’s assume the FirstGroup trend continues upwards to 102p Sept highs (+12%). Your profit would be £1200, 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. FirstGroup 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.