Informa
Is this breakout a good trade for you?
Will Informa turn, or will it continue to rise towards July highs of 866p?
- Breakout above 750p to trade 765p (at time of writing).
- The ‘trend is your friend’. Will it continue towards 866p?
- Shares at 2019 highs; +26% from 2019 lows; +6.5% year-to-date.
- 8 Mar: Credit Suisse says de-leveraging on track
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Informa – An Example
Let’s say the breakout appeals to you, you think it’s likely to continue to 866p . You decide to buy exposure to £10,000 worth of Informa using a CFD, at the current price 765p (at time of writing). To do this, you need £2,000.
Let’s assume the Informa trend continues upwards to 866p (+13.2%). Your profit would be £1320, 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. Informa 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.