Will SIG turn, or will it continue to rise towards 146p?

• Double breakout at 128 and 131p; Now trading 133p (at time of writing).
• Could they recover to prior highs of 146p?
• Shares -1.8% from 2019 highs; +26.1% from 2019 lows; +21.4% year-to-date
• 8 Mar: SIG swings to pre-tax profit in 2018; business shake-up pays off
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading SIG – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue towards 146p. You decide to buy exposure to £10,000 worth of SIG using a CFD, at the current price of 133p. To do this, you need £2,000.

Let’s assume the SIG trend continues to highs of 146p (+9.7%). Your profit would be £970, 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. SIG 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.