Will Bunzl turn, or will it continue to rise beyond 2300p?

• The chart shows the last 2 months’ price action for Bunzl.
• The shares have broken above a resistance level around 2272p to trade 2305p (at time of writing).
• The ‘trend is your friend’. Will it continue?
• Will the shares rise back 2431p September highs?
• Shares -7.8% from 2018 highs; +17.3% from 2018 lows; +11.2% year-to-date.
• Shares rallied after last week’s (23 Oct) Q3 trading statement; revenues +7% (4% organic, +3% acquisitions)
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading Bunzl – An Example

Let’s say the Bunzl  appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of Bunzl using a CFD, at the current price of 2305p. To do this, you need £2,000.

Let’s assume the Bunzl trend continues upwards to 2431p (+5.4%). Your profit would be £540, 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. Bunzl breaks lower, 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.