Will Meggitt turn, or will it continue to rise towards 570p?

• Breakout above 541p; Now trading 546p (at time of writing).
• The ‘trend is your friend’. Will it continue towards 570p?
• Shares -4.1% from 2019 highs; +19.6% from 2019 lows; +15.8% year-to-date.
• 25Apr: Q1 Trading in-line, Revenues up thanks to aircraft platform demand
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Meggitt – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue to . You decide to buy exposure to £10,000 worth of Meggitt using a CFD, at the current price 546p (at time of writing). To do this, you need £2,000.

Let’s assume the Meggitt trend continues upwards to 570p highs (+4.4%). Your profit would be £440, 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. Meggitt 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.