Will Man Group turn, or will it continue to break upwards beyond 136p?

• The chart shows the price action for Man Group since late November.
• The shares have broken beyond 134p resistance to trade 136p (at time of writing).
• The ‘trend is your friend’. Will the reversal continue?
• 24 Dec: Man Group doubles and extends share buyback programme
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Man Group – 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 Man Group using a CFD, at the current price of 136p. To do this, you need £2,000.

Let’s assume the Man Group trend continues to 151p (+11%). Your profit would be £1100, 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. Man Group breaks down, falling 5% and it hits your stop-loss. Your loss would be £500.

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