Is this breakout a good trade for you?

Will BTG turn, or will it continue towards 696p April highs ?

• The chart shows the last 6 month’s price action for BTG 
• The shares have broken above a resistance line at 576p to trade 587p (at time of writing).
• The ‘trend is your friend’. Will it continue?
• Will the shares rally back to April highs of 696p?
• Shares -27.2% from 2018 highs; +19.7% from 2018 lows; -23% year-to-date.
• 4 Oct: Panmure says BTG’s transition to interventional medicine looks healthy
• 4 Oct: BTG upgrades full year sales guidance
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading BTG – 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 BTG using a CFD, at the current price of 587p. To do this, you need £2,000.

Let’s assume the BTG trend continues upwards to 696p (+18.6%). Your profit would be £1860, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. BTG breaks down, falling 5% and it hits your stop-loss. Your loss would be £500.

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