Will LSE turn, or will it continue to rise toward 4803p Sept highs?

• Breakout above 4389p resistance to trade 4510p (at time of writing).
• The ‘trend is your friend’. Will it continue towards 4803p Sept highs?
• Shares -7.5% from 2018 highs; +23.3% from 2018 lows; +11.0% year-to-date.
• 14 Dec: LSE appoints Donald Robert (ex-Experian) next chairman;
• 14 Dec: LSE completes acquisition of stake in LCH
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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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 LSE using a CFD, at the current price of 4510p. To do this, you need £2,000.

Let’s assume the LSE trend continues toward 4803p Sept highs (+6.5%). Your profit would be £650, 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. LSE  breaks lower, falling 3% and hits your stop-loss. Your loss would be £300.

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