Will Renishaw break lower, or will it rise back to 4500p channel ceiling again?

• Renishaw shares are trading in a rising range since mid-October.
• Bounced off support zone 4 times.
• Now trading 3928p (at time of writing)
• Will the pattern repeat itself, testing previous highs?
• Shares -33.2% from 2018 highs; +7.6% from 2018 lows; -7.7% year-to-date
• 18 Oct: Renishaw said Q3 revenue +8% YoY and confident in future prospects.
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Renishaw – An Example

Let’s say you like the range, you think it’s heading back towards 4500p channel ceiling again. You decide to buy exposure to £10,000 worth of Renishaw using a CFD, at the current price of 43928p. To do this, you need £2,000.

Let’s assume Renishaw rise back to 4500p rising channel ceiling (+14.6%). Your profit would be £1460, 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. Renishaw 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.