Will Direct Line turn, or will it continue to rise towards 397p?

• Broken above resistance at 328p to trade 333p (at time of writing).
• The ‘trend is your friend’. Will it continue towards 397p?
• Shares -16.6% from 2018 highs; +10.1% from 2018 lows; +4.6% year-to-date.
• 6 Nov: Management reiterates FY 2018 profits guidance.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Direct Line – 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 Direct Line using a CFD, at the current price 333p (at time of writing). To do this, you need £2,000.

Let’s assume the Direct Line trend continues upwards to 397p highs (+19.2%). Your profit would be £1920, 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. Direct Line 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.