Is this breakout a good trade for you?

Will Bellway turn, or will it continue to break upwards beyond 3012p?

• The above chart shows the last 5 months price action.
• It has recently broken above the key 2975p level.
• The trend is your friend’. Will it continue?
• End-August, analysts at Deutsche Bank upgraded Bellway shares to Buy (target 3745p)
• Deutsche said “London/south issues look overplayed – while group revenue from London is ahead of peers, Bellway‘s private average selling price remains below the sector average and its strong and increasing focus on build efficiencies should support margins”

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Trading Bellway – 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 Bellway using a CFD, at the current price of 3012p. To do this, you need £2,000.

Let’s assume Bellway’s trend continues to 3432p. Your profit would be £1,395, 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, at 2925p. Bellway trend breaks down, 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.