Will London Stock Exchange turn, or will it to continue to fresh record highs?

• Bullish breakout above 5181p to trade record highs of 5260p  (at time of writing).
• The ‘trend is your friend’. Will it continue towards 5500p?
• Shares -0.8% from 2019 highs; +31.3% from 2019 lows; +29.4% year-to-date.
• 15 May: LSE Q1 growth driven by information services and 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 to 5500p . You decide to buy exposure to £10,000 worth of LSE using a CFD, at the current price 5260p (at time of writing). To do this, you need £2,000.

Let’s assume the LSE trend continues upwards to a new record highs of 5500p (+4.5%). Your profit would be £450, 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. LSE 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.