Will Compass Group turn, or will it continue to rise towards 1771p?

• Breakout above 1706p; Now trading 1711p (at time of writing).
• Could they recover to prior highs of 1771p?
• Shares -3.6% from 2019 highs; +8.7% from 2019 lows; +3.8% year-to-date
• 28 Feb: Fitch affirms Compass Group det rating at ‘A-‘; Outlook stable
• 7 Feb: Compass sees organic growth slightly above middle of 4%-6% target
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Compass Group – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue towards 1771p. You decide to buy exposure to £10,000 worth of Compass Group using a CFD, at the current price of 1711p. To do this, you need £2,000.

Let’s assume the Compass Group trend continues to highs of 1771p (+3.5%). Your profit would be £350, 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. Compass Group 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.