Will Cobham turn, or will it continue up towards 126p?

• Breakout above 110p and 113p to trade 115p  (at time of writing).
• The ‘trend is your friend’. Will it continue towards 126p?
• Shares -15.9% from 2018 highs; +19.6% from 2018 lows; +17.9% year-to-date.
• 4 Feb: Leonardo signs €180m deal to upgrade NATO equipment using Cobham tech
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Cobham – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue to 126p . You decide to buy exposure to £10,000 worth of Cobham using a CFD, at the current price 115p (at time of writing). To do this, you need £2,000.

Let’s assume the Cobham trend continues upwards to 126p (+9.6%). Your profit would be £960, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price. Cobham breaks lower, falling 4% and it hits your stop-loss. Your loss would be £400.

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