Will Derwent London turn, or will it continue to rise beyond 3007p?

• The chart shows share price action for Derwent London since November.
• The shares have broken a resistance line at 2980p.; Now trading 3007p (at time of writing).
• The ‘trend is your friend’. Will it continue? Will the shares rally back to Nov highs of 3147p?
• Shares -8.3% from 2018 highs; +8.5% from 2018 lows; +5.3% year-to-date.
• 23 Nov: Jefferies says its business as usual at Derwent after management changes
• 22 Nov: Derwent London agrees private placement of £250m in unsecured notes
• 8 Nov: Derwent London says rentals accelerated in the second half
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Derwent London – 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 Derwent using a CFD, at the current price of 3007p. To do this, you need £2,000.

Let’s assume the Derwent trend continues toward 3147p Nov highs (+4.6%). Your profit would be £460, 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. Derwent breaks lower, falling 2% and hits your stop-loss. Your loss would be £200

This is provided for information purposes only. It should not be taken as a recommendation.