Will Barratt Developments turn, or will it continue to rise towards 626p (+6.3%)?

• Breakout above 578p; Back within range 
• Now trading 589p (at time of writing).
• Will the shares rise back to April highs of 626p (6.3%)?
• Shares -6.2% from 2019 highs; +30.7% from 2019 lows; +27.3% year-to-date
• 28 Jun: UK builders gain on tax-cut talk by Boris Johnson
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Barratt Developments – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue towards 626p. You decide to buy exposure to £10,000 worth of Barratt using a CFD, at the current price of 589p. To do this, you need £2,000.

Let’s assume the Barratt trend continues to highs of 626p (+6.3%). Your profit would be £630, 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. Barratt 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.