Will Legal & General London turn, or will it continue to rise beyond 251p?

• The chart shows share price action for Legal & General since August.
• The shares are testing a resistance line at 250p.; Now trading 251p (at time of writing).
• The ‘trend is your friend’. Will it continue? Will the shares rally back to Nov highs of 266p?
• Shares -14.9% from 2018 highs; +10.3% from 2018 lows; +8.5% year-to-date.
• 7 Jan: Deutsche Bank upgrades to buy, Legal & General best-placed for Brexit, Corbyn Risk
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Legal & General – 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 Legal & General using a CFD, at the current price of 251p. To do this, you need £2,000.

Let’s assume the Legal & General trend continues toward 266p Nov highs (+6.0%). Your profit would be £600, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price. Legal & General breaks lower, falling 2% and hits your stop-loss. Your loss would be £200

This is provided for information purposes only. It should not be taken as a recommendation.