Will Greggs turn, or will it continue to rise beyond 1400p record highs?

• The chart shows the last 2 months’ price action for Greggs
• The shares have broken above a November resistance level around 1229p 
• Now trading at 1245p (at time of writing).
• The ‘trend is your friend’. Will it continue?
• Shares -11% from 2018 highs; +30.5% from 2018 lows; -11% year-to-date.
• 9 Oct: Greggs’s improved 3Q margin performance encouraging says Goodbody
• 9 Oct: Greggs shares heat up as health push pays off says Markets.com
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading Greggs – 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 Greggs  using a CFD, at the current price of 1245p. To do this, you need £2,000.

Let’s assume the Greggs trend continues upwards to 1400p (+12.5%). Your profit would be £1250, 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. Greggs breaks lower, falling 5% and it hits your stop-loss. Your loss would be £500.

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