Is this breakout a good trade for you?

Will Moneysupermarket turn, or will it continue to rise beyond 300p?

• The chart shows the last 2 months’ price action for Moneysupermarket
• The shares have broken above horizontal resistance at 287p to trade 290p (at time of writing).
• The ‘trend is your friend’. Will it continue?
• Will the shares rise back to August’s 319 highs?
• Moneysupermarket issued a Q3 trading update (11 Oct) that pointed to rising revenue, boosted by growth of its money segment, while insurance and home-services business lagged. (Source: DowJones)
• Company said it was on track to meet FY guidance and market expectations.
• Shares -23.2% from 2018 highs; +17.3% from 2018 lows; -17.9% year-to-date.
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading Moneysupermarket – 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 Moneysupermarket using a CFD, at the current price of 290p. To do this, you need £2,000.

Let’s assume the Moneysupermarket trend continues upwards to 319p (+10%). Your profit would be £1,000, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 8% from the current price. Moneysupermarket breaks lower, falling 8% and it hits your stop-loss. Your loss would be £800.

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