Will Londonmetric Property turn, or will it continue to rise beyond 180p?

• The chart shows the price action for Londonmetric since mid-November.
• The shares have broken above a resistance trendline at 179p.
• The shares are currently 180p (at time of writing).
• The ‘trend is your friend’. Will it continue?
• Shares -11.4% from 2018 highs; +5.0% from 2018 lows; -2.8% year-to-date.
• 28 Nov: Liberum says H1 shows UK returns still strong
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Londonmetric Property – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue to 189p. You decide to buy exposure to £10,000 worth of Londonmetric using a CFD, at the current price 180p (at time of writing). To do this, you need £2,000.

Let’s assume the Londonmetric trend continues upwards to 189p (+5%). Your profit would be £500, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price. Londonmetric breaks lower, falling 2% and it hits your stop-loss. Your loss would be £200.

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