Will Admiral turn, or will it continue to rise beyond 2050p?

• The chart shows the last 2.5 month’s price action for Admiral
• The shares have broken above a resistance level at 2025p to trade 2037p (at time of writing).
• The ‘trend is your friend’. Will it continue?
• Will the shares rise back to September’s 2137p highs?
• Shares -5.1% from 2018 highs; +13.1% from 2018 lows; +1.7% year-to-date.
• 1 Oct: Peel Hunt says UK Motor Insurers beat Lloyd’s members for value
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading Admiral – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of Admiral using a CFD, at the current price of 2037p. To do this, you need £2,000.

Let’s assume the Admiral trend continues upwards to 2137p (+4.9%). Your profit would be £490, 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. Admiral 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.