Is this breakout a good trade for you?

Will Great Portland Estates turn, or will it continue to rise beyond 707p?

• The chart shows the last 3 weeks’ price action for Great Portland Estates.
• The shares have broken above horizontal resistance at 678p to trade 684p (at time of writing).
• Breakout and strong positive momentum after company announced a sale of Mortimer St property on behalf of St James’s Place for £38.5m
• Shares trading close to 2018 lows, with the breakout suggesting many investors see a bargain opportunity.
• The ‘trend is your friend’. Will it continue?
• Will the shares rise back to 707p recent highs?
• Shares -16.44% from 2018 highs; +3.35% from 2018 lows; -14.35% year-to-date.
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading Great Portland Estates – 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 Great Portland Estates using a CFD, at the current price of 684p. To do this, you need £2,000.

Let’s assume the Great Portland Estates trend continues upwards to 707p (+3.3%). Your profit would be £330, 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. Great Portland Estates 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.