Will Diageo turn, or will it maintain momentum to new record highs?

• Shares +5.8% since May lows; trading new all-time highs.
• Now trading 3345p (at the time of writing).
• Will the positive momentum continue towards new record highs at 3600p?
• Shares -0.5% from 2019 highs; +24.3% from 2019 lows; +19.6% year-to-date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Diageo – An Example

Let’s say the trend appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of Diageo using a CFD, at the current price of 3345p. To do this, you need £2,000.

Let’s assume Diageo trend continues beyond 3013p record highs to reach 3600p (+7.6%). Your profit would be £760, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% below the current price. Diageo falls 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.