Will Bovis Homes turn, or will it continue to rise towards 1060p?

• Shares testing resistance at 987p, trading 992p (at time of writing).
• The ‘trend is your friend’. Will it continue towards Nov highs of 1060p
• Shares -27.0% from 2018 highs; +16.9% from 2018 lows; +15.2% year-to-date.
• 16 Jan: Bovis Homes sees 2018 profits ahead of consensus; Raises dividend
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Bovis Homes– An Example

Let’s say the breakout appeals to you, you think it’s likely to continue to . You decide to buy exposure to £10,000 worth of Bovis using a CFD, at the current price 992p (at time of writing). To do this, you need £2,000.

Let’s assume the Bovis trend continues upwards to 1060p Nov highs (+6.9%). Your profit would be £690, 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. Bovis 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.