Will Legal & General turn, or will it continue to rise towards 287p?

• Breakout above 267p to trade 271p (at time of writing).
• The ‘trend is your friend’. Will it continue to 287p highs?
• Shares at 2019 highs; +20.3% from 2019 lows; +17.6% year-to-date
• 7 Jan: Deutsche upgrades to Buy; L&G best-placed for Brexit, Corbyn risk
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Legal & General– An Example

Let’s say the breakout appeals to you, you think it’s likely to continue towards 287p. You decide to buy exposure to £10,000 worth of Legal & General using a CFD, at the current price of 271p. To do this, you need £2,000.

Let’s assume the Legal & General trend continues to 287p (+5.9%). Your profit would be £590, 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 it hits your stop-loss. Your loss would be £200.

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