Will Ashtead turn, or will it continue to fall towards 1585p?

• Breakdown below 1856p to trade 1817p  (at time of writing).
• The ‘trend is your friend’. Will it continue down towards 1585p?
• Shares -13.2% from 2019 highs; +14.6% from 2019 lows; +11.0% year-to-date.
• 5 Mar: AJ Bell says share price highlights US economic fears
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Ashtead – An Example

Let’s say the breakdown appeals to you, you think it’s likely to continue to 1585p . You decide to sell exposure to £10,000 worth of Ashtead using a CFD, at the current price 1817p (at time of writing). To do this, you need £2,000.

Let’s assume the Ashtead trend continues down towards 1585p (-12.7%). Your profit would be £1270, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Ashtead breaks higher, rising 5% and it hits your stop-loss. Your loss would be £500.

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