Will Burberry turn, or will it continue up towards 2000p (+7%)?

• Shares +6% from recent lows; Breakout above 1822p
• Now trading 1862p (at time of writing).
• The ‘trend is your friend’. Will it continue towards 2000p (+7%)?
• Shares -8.6% from 2019 highs; +15.1% from 2019 lows; +7.4% year-to-date.
• 28 Jun: Burberry upgraded to Neutral From Sell at Goldman Sachs
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Burberry – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue to 2000p . You decide to buy exposure to £10,000 worth of Burberry using a CFD, at the current price of 1822p (at time of writing). To do this, you need £2,000.

Let’s assume the Burberry trend continues up towards 2000p (+7%). Your profit would be £700, 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. Burberry breaks lower, falling 3% and it hits your stop-loss. Your loss would be £300.

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