Is this breakout a good trade for you?

Will BBA Aviation turn, or will it continue towards 317p August highs?

• The chart shows the last 7 week’s price action for BBA Aviation.
• The shares have broken above a resistance line at 302p to trade 304.5p (at time of writing).
• The ‘trend is your friend’. Will it continue?
• Shares -17.8% from 2018 highs; +8.6% from 2018 lows; -12.9% year-to-date.
• 21 Sept: Liberum says BBA Aviation need not fear a US business flights downturn
• 18 Sept: BBA acquires Firstmark for $97m
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading BBA Aviation – An Example

Let’s say the BBA breakout appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of BBA using a CFD, at the current price of 304.5p. To do this, you need £2,000.

Let’s assume the BBA trend continues upwards to 318p (+4.4%). Your profit would be £443, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price. BBA breaks down, falling 2% and it hits your stop-loss. Your loss would be £200.

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