Will London Stock Exchange turn, or will it continue to rise toward 4814p September highs?

• The chart shows share price action for London Stock Exchange since mid-July.
• The shares have broken above horizontal resistance around 4109p.
• Now trading 4350p (at time of writing).
• 14 Dec: LSE appointed Donald Robert (ex-Experian) as its next chairman.
• Will the shares rally back to 4814p September highs?
• Shares -0.6% from 2019 highs; +8% from 2019 lows; +7.1% year-to-date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading London Stock Exchange – 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 London Stock Exchange using a CFD, at the current price of 4353p. To do this, you need £2,000.

Let’s assume the London Stock Exchange trend continues toward 4814p September highs (+10.6%). Your profit would be £1060, 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. London Stock Exchange breaks lower, falling 5% and hits your stop-loss. Your loss would be £500.

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