Is this breakout a good trade for you?

Will Halma turn, or will it continue to make fresh record highs above 1500p?

• The chart shows the last 5 month’s price action for Halma.
• The shares have broken above a resistance line at 1461p to a fresh record high of 1494p (at time of writing).
• The ‘trend is your friend’. Will it continue?
• Shares -0.1% from 2018 highs; +27.2% from 2018 lows; +18.6% year-to-date.
• 27 Sept: Halma said it was trading in line with expectations; US performing strongly

Click to enlarge

Trading Halma– 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 Halma using a CFD, at the current price of 1494p. To do this, you need £2,000.

Let’s assume the Halma trend continues upwards to 16004p (+7.1%). Your profit would be £710, 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. Halma breaks down, 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.