Will Balfour Beatty turn, or will it continue to rise beyond 256p?

• The chart shows price action for Balfour Beatty since mid-October
• The shares have broken above a resistance level at 249p to trade 256p (at time of writing).
• Shares up 4% today. The ‘trend is your friend’. Will it continue?
• Infrastruture and construction company.
• 14 Dec: Liberum says Balfour Beatty is on the right path
• 14 Dec: Balfour Beatty says 2018 Performance to beat expectations
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Balfour Beatty – 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 Balfour Beatty using a CFD, at the current price of 256p. To do this, you need £2,000.

Let’s assume the Balfour Beatty trend continues to 281p October highs (+9.8%). Your profit would be £980, 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. Balfour Beatty 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.