Will Hiscox turn, or will it continue up towards 1723p?

• Double breakout above 1480p to trade 1500p  (at time of writing).
• The ‘trend is your friend’. Will it continue towards 1723p?
• Shares -13.5% from 2018 highs; +16.4% from 2018 lows; -7.4% year-to-date.
• 3 Jan: London insurers better placed than European peers, says UBS
• 3 Jan: Flat renewal prices not an issue for Lloyd’s insurers: Canaccord
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Hiscox – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue to 1723p . You decide to buy exposure to £10,000 worth of Hiscox using a CFD, at the current price 1500p (at time of writing). To do this, you need £2,000.

Let’s assume the Hiscox trend continues upwards to 1723p (+14.9%). Your profit would be £1490, 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. Hiscox 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.