Will GVC turn, or will it continue to rise beyond 783p December highs?

• The chart shows price action for GVC since late November
• The shares have broken above a falling highs resistance level around 668p and horizontal resistane around 705p.
• Currently trading at 721p (at time of writing).
• Shares rally ahead of the Parliamentary vote to restrict  FOBT maximum bets.
• If the law passes, GVC will not have to pay £700m to Ladbrokes’ former shareholders.
• Shares up more than 9% today. The ‘trend is your friend’. Will it continue?
• Shares -39.1% from 2018 highs; +15.5% from 2018 lows; -22% year-to-date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading GVC – 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 GVC using a CFD, at the current price of 721p. To do this, you need £2,000.

Let’s assume the GVC trend continues to 783p December highs (+8.6%). Your profit would be £860, 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. GVC 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.