Will Pennon break resistance, or will it fall back to 680p?

• Sideways range since June.
• Fallen back from highs 4 times. Now 784p (at time of writing)
• Will the pattern repeat itself, shares testing prior 680p lows?
• Shares -1.8% from 2019 highs; +15.3% from 2019 lows; +13.3% year-to-date
• 18 Feb: Upbeat sentiment on trade optimism denting interest in defensive utilities.
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Pennon – An Example

Let’s say you like the Pennon range, you think it’s heading back down to 680p again. You decide to sell exposure to £10,000 worth of Pennon using a CFD, at the current price of 784p. To do this, you need £2,000.

Let’s assume Pennon falls back to 680p (-13.2%). Your profit would be £1320, 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. Pennon rises 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.