Will Renishaw break resistance, or will it fall back to 3675p?

• 3675-4695p range since November; Now trades 4535p (at time of writing)
• Will the pattern repeat itself, testing the 3675p floor?
• Shares -4.1% from 2019 highs; +27.3% from 2019 lows; +6.8% year-to-date.
• 27 Mar: UBS says Renishaw set to face pressure in consumer electronics
• 21 Mar: Renishaw warns of lower adjusted pretax profit, revenue on Asia slowdown
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Renishaw – An Example

Let’s say you like the range, you think it’s heading back towards 3675p again. You decide to sell exposure to £10,000 worth of Renishaw using a CFD, at the current price of 4534p. To do this, you need £2,000.

Let’s assume Renishaw falls to 3675p (-18.9%). Your profit would be £1890, 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. Renishaw rises 3% and hits your stop-loss. Your loss would be £300.

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