Will Dechra Pharma turn, or will it continue to rise towards 3158p highs?

• Breakout above 2617p; Now trading 2653p (at time of writing).
• Could they recover to prior highs of 3158p?
• Shares -0.1% from 2019 highs; +29.9% from 2019 lows; +28.2% year-to-date
• 25 Mar: Jefferies says Dechra’s free cash flow supports valuation premium
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Dechra Pharma – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue towards 3158p. You decide to buy exposure to £10,000 worth of Dechra using a CFD, at the current price of 2653p. To do this, you need £2,000.

Let’s assume the Dechra trend continues to highs of 3158p (+19%). Your profit would be £1900, 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. Dechra 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.