Will Halma turn, or will it continue to rise beyond 1380p?

• The chart shows the last month’s price action for Halma.
• The shares have broken out above resistance at 1345p
• Shares trading 1380p (at time of writing).
• The ‘trend is your friend’. Will it continue?
• Shares -11.7% from 2018 highs; +17.2% from 2018 lows; +9.6% year-to-date.
• Halma is a provider of Security Services
• 19 Oct: Halma buys Limotec for €9.3m
• 27 Sept: Halma trading in line with expectations; US strong performer
• Source: Bloomberg, FT, Reuters, DJ Newswires

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 1380p. To do this, you need £2,000.

Let’s assume the Halma trend continues to 1500p Oct highs (+8.7%). Your profit would be £870, 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 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.