Is this breakout a good trade for you?

Will Crest Nicholson turn, or will it continue to rise beyond 325p?

• The chart shows the last 2 month’s price action for Crest Nicholson.
• The shares have broken above out week’s highs to trade at 325.6p (at time of writing).
• The ‘trend is your friend’. Will it continue?
• Shares -42.7% from 2018 highs; +17.8% from 2018 lows; -40.3% year-to-date.
• 22 Oct: Crest Nicholson is a takeover target, says shareholder Jupiter (Telegraph)
• 17 Oct: Peel Hunt says Crest Nicholson’s slump may spark bid talk
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading Crest Nicholson– 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 Crest Nicholson using a CFD, at the current price of 325.6p. To do this, you need £2,000.

Let’s assume the Crest Nicholson trend continues to 399p August highs (+22.5%). Your profit would be £2250, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at % from the current price. Crest Nicholson 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.