Will Johnson Matthey turn, or will it continue to rise towards 3400p?

• Breakout above 3137p to trade 3198p (at time of writing).
• The ‘trend is your friend’. Will it continue towards 3400p?
• Shares -1.5% from 2019 highs; +18.8% from 2019 lows; +14.2% year-to-date
• Mining shares benefiting US-China trade deal optimism
• Palladium prices very strong
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Johnson Matthey – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue towards 3400p. You decide to buy exposure to £10,000 worth of Johnson Matthey using a CFD, at the current price of 3198p. To do this, you need £2,000.

Let’s assume the Johnson Matthey trend continues to 3400p (+6.3%). Your profit would be £630, 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. Johnson Matthey breaks lower, falling 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.