Is this breakout a good trade for you?

Will Experian turn, or will it continue to break upwards beyond 1975p?

• The chart shows the last month’s price action for Experian.
• The shares have broken above a resistance line at 1954p to trade 1975p.
• The shares are trading fresh record highs
• The ‘trend is your friend’. Will it continue?
• Shares -0.1% from 2018 highs; +31.1% from 2018 lows; +20.8% year-to-date
• 31 July: UK Regulator refers Experian’s acquisition of ClearScore for further investigation

Click to enlarge

Trading Experian – 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 Experian using a CFD, at the current price of 1975p. To do this, you need £2,000.

Let’s assume the Experian trend continues to fresh highs of 2100p (+6.3%). Your profit would be £630, 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. Experian breaks down, 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.