Will Capital & Counties turn, or will it continue to rise beyond 275p 3-month highs?

• The chart shows the last 5 months’ price action for Capital & Counties
• The shares have broken above September resistance at 268p
• Now trading 275.3p (at time of writing).
• The ‘trend is your friend’. Will it continue?
• Shares -16.1% from 2018 highs; +14.6% from 2018 lows; -13.9% year-to-date.
• 5 Nov: Capital & Counties mulls proposals for Earls Court, as it continues to prepare for possible de-merger.
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading Capital & Counties – 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 Capital & Counties using a CFD, at the current price of 275.3p. To do this, you need £2,000.

Let’s assume the Capital & Counties trend continues upwards to 311p May highs(+12.9%). Your profit would be £1290, 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. Capital & Counties breaks lower, 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.