Will Inmarsat turn, or will it continue to break upwards beyond 394p?

• The chart shows the price action for Inmarsat since mid-December.
• The shares have broken beyond 389p resistance to trade 394p (at time of writing).
• The ‘trend is your friend’. Will the reversal continue?
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Inmarsat – 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 Inmarsat using a CFD, at the current price of 394p. To do this, you need £2,000.

Let’s assume the Inmarsat trend continues to 429p (+8.9%). Your profit would be £888, 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. Inmarsat breaks down, 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.