This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
UK Index stocks are lively as ever. The benchmark is +8.3% so far this year. Many of its components are rallying. Some are rising on momentum, others are already at the top of a range. We broached the subject a couple of weeks ago but the recent market movements warrant a revisit.
Does the UK Index ‘s 2019 uptrend mean that we need to be weary of stocks topping out? Have you missed the Bullish boat? Not at all. There are still plenty of tradable opportunities. You just have to know where to look.
Shares trading at the bottom of a range appear on our radar every day. For example, earlier this week (20 Mar) we highlighted Antofagasta shares bouncing off the floor of a 4-week range. The very next day, the shares rallied more than 8%.
The shares hit the the range ceiling, and pulled back. As it stands, they are 3.6% off their highs, with potential to fall all the way back to the floor; another 4% drop. That’s two trade opportunities in two days; an 8% rally and an 8% fall. Not to be sneezed at! If the range holds, could we see another bounce and 8% rally? Be ready to pounce!
If this sounds simple, that’s because it is. It’s not rocket science, it’s range trading! It’s one of the most popular and straight-forward strategies out there. Because it is logical and straight-forward. Look at the chart. Find the support and resistance levels. Trade between them. Buy low, sell high.
The trick, of course
, is finding a reliable trading range. This is where Accendo’s research comes in. Our award-winning Research team (we won another one this week) highlights easily-decipherable trading opportunities for clients twice daily.
You like stocks trading ranges? You will receive a few every day. How about stocks that have fallen, primed for a rebound? Perhaps you prefer those trading with momentum?
Whatever you focus on, Accendo’s research has it covered. All that remains is for you to sign up to Gold Pass research to see for yourself how good it really is.
Amrit Panesar, Trader, 22 March 2019
This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.
Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance.
Prepared by Michael van Dulken, Head of ResearchComments are closed.