Will Howden Joinery break lower, or will it rise to 491p again?

• The Howden Joinery trading range developed since early October.
• Shares bounced back from support zone around 432p, most recently last week.
• Now trading 436p (at time of writing).
• Will the pattern repeat itself, testing previous highs?
• Shares -18.8% from 2018 highs; +2% from 2018 lows; -6.6% year-to-date
• Howden Joinery is a manufacturer of kitchen and joinery products.
• 8 Nov: The company reported that it is on track to meet its full-year expectations after revenue +7.5%, mainly driven by volume growth.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Howden Joinery – An Example

Let’s say you like the Howden Joinery  range, you think it’s heading back towards 491p again. You decide to buy exposure to £10,000 worth of Howden Joinery using a CFD, at the current price of 436p. To do this, you need £2,000.

Let’s assume Howden Joinery  rises back to 491p (+12.9%). Your profit would be £1290, 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. Howden Joinery falls 5% and hits your stop-loss. Your loss would be £500.

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