Will Electrocomponents turn, or will it continue to rise towards 758p?

• Breakout above 645p; Now trading 650p (at time of writing).
• The ‘trend is your friend’. Will it continue towards 758p?
• Shares -0.1% from 2019 highs; +36% from 2019 lows; +28.4% year-to-date.
• 4 Apr: Jefferies says company could return £500m cash via special div or  buyback
• 4 Apr: Q4 and FY2019 revenues +8%
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Electrocomponents – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue to . You decide to buy exposure to £10,000 worth of Electrocomponents using a CFD, at the current price 650p (at time of writing). To do this, you need £2,000.

Let’s assume the Electrocomponents trend continues upwards to 758p highs (+16.6%). Your profit would be £1660, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price. Electrocomponents breaks lower, falling 4% and it hits your stop-loss. Your loss would be £400.

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