Is this breakout a good trade for you?

Will INTU Properties turn, or will it continue to rise beyond 200p?

• The chart shows this year’s price action for INTU Properties on takeover speculation
• The shares have broken recent highs to trade their highest since June; 189p (at time of writing).
• The ‘trend is your friend’. Will it continue? Will the shares climb beyond 200p?
• Shares -26% from 2018 highs; +27% from 2018 lows; -26% year-to-date.
• Brookfield Consortium (Brookfield, Peel, Olayan) mulling cash offer for Intu Properties.
• No price mentioned but the shares jumped 37% this morning to trade their highest since June
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading INTU Properties – 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 INTU using a CFD, at the current price of 189p. To do this, you need £2,000.

Let’s assume the INTU trend continues upwards to 220p (+16.4%). Your profit would be £1640, 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. INTU 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.