Will Halma turn, or will it continue to rise beyond 1413p?

• The chart shows the price action for Halma since October.
• The shares have broken above a resistance trendline at 1392p to trade 1413p (at time of writing).
• The ‘trend is your friend’. Will it continue?
• Shares -9% from 2018 highs; +20.8% from 2018 lows; -12.2% year-to-date.
• 20 Nov: Halma expects strong full year performance; expects FX headwind to reverse
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Halma – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue to 1506p . You decide to buy exposure to £10,000 worth of Halma using a CFD, at the current price 1413p (at time of writing). To do this, you need £2,000.

Let’s assume the Halma trend continues upwards to 1506p Oct highs (+6.4%). Your profit would be £640, 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. Halma 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.