Will TalkTalk turn, or will it continue to rise beyond 123p?

• The chart shows price action for TalkTalk since early November
• The shares have broken above resistance at 122.1p
• Currently trading at 122.7p (at time of writing).
• The ‘trend is your friend’. Will it continue?
• Shares -20.3% from 2018 highs; +37.1% from 2018 lows; -19.5% year-to-date.
• 14 Dec: Ofcom launches review of UK broadband prices (this could benefit smaller players)
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading TalkTalk – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of TalkTalk using a CFD, at the current price of 122.7p. To do this, you need £2,000.

Let’s assume the TalkTalk trend continues to 134p Nov highs (+9.2%). Your profit would be £920, 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. TalkTalk breaks lower, falling 3% and it hits your stop-loss. Your loss would be £300.

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