Will Bellway turn, or will it continue to rise towards 3438p?

• Breakout above May 2018 falling trendline at 2899p.
• Now trading at 2989p (at time of writing).
• Shares trading at 2019 highs; +20% from 2019 lows; +27.8% year-to-date
• 26 Feb: UK housebuilder shares strong on Brexit optimism
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Bellway – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue towards 3438p. You decide to buy exposure to £10,000 worth of Bellway using a CFD, at the current price of 2989. To do this, you need £2,000.

Let’s assume the Bellway trend continues to highs of 3438p (+15.0%). Your profit would be £1500, 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. Bellway 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.