Is this breakout a good trade for you?

Will Dixons Carphone turn, or will it continue to break upwards beyond 200p?

• The chart shows the last 3 month’s price action for Dixons.
• It has recently broke out from a falling channel.
• The ‘trend is your friend’. Will it continue?
• Dixons Carphone may benefit from the upcoming release of the new Apple iPhones

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Trading Dixons Carphone – 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 Dixons Carphone using a CFD, at the current price of 170.95p. To do this, you need £2,000.

Let’s assume Dixons Carphone’s trend continues to 2005p. Your profit would be £1695, 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. Dixons Carphone’s trend breaks down, falling 5% and it hits your stop-loss. Your loss would be £300.

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