Will Hiscox turn, or will it continue to rise beyond 1610p?

• The chart shows the last few months’ price action for Hiscox.
• The shares have broken above resistance at 1588p 
• Shares trading 1610p (at time of writing).
• The ‘trend is your friend’. Will it continue?
• Shares -10.5% from 2018 highs; +20.5% from 2018 lows; +10.1% year-to-date.
• Hiscox recently promoted to UK 100
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Hiscox – 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 Hiscox using a CFD, at the current price of 1610p. To do this, you need £2,000.

Let’s assume the Hiscox trend continues to 1725p Nov highs (+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. Hiscox breaks higher, rising 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.