Will Experian turn, or will it continue to rise beyond 1900p?

• The chart shows the last 6 week’s price action for Experian
• The shares have broken above a resistance level at 1838p trade 1895p (at time of writing).
• The ‘trend is your friend’. Will it continue?
• Shares -10.1% from 2018 highs; +20% from 2018 lows; +15.9% year-to-date.
• 13 Nov: Experian expects FY organic revenue growth at top of previous guidance range
• 13 Nov: Shore says Experian driven forward by North American growth
• Source: Bloomberg, FT, Reuters, DJ Newswires

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 1895p (at time of writing). To do this, you need £2,000.

Let’s assume the Experian trend continues upwards to 1994p (+5.2%). Your profit would be £520, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Experian breaks lower, falling 3% 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.