Will Renishaw break support, or will it rise back to 4900p range ceiling?

• 4015-4900p rising range since early Nov.
• Now trades 4109p (at time of writing)
• Will the pattern repeat itself, rising back to 4900p range ceiling?
• Shares -13% from 2019 highs; +6.5% from 2019 lows; -3% year to date
• 31 Jan: Precision measurement company said FY revenue will beat last year.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Renishaw – An Example

Let’s say you like the range, you think it’s heading back towards 4900p. You decide to buy exposure to £10,000 worth of Renishaw using a CFD, at the current price of 4109p. To do this, you need £2,000.

Let’s assume Renishaw rises to 4900p range ceiling (+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. 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.