Will National Grid turn, or will it continue to rise towards 891p?

• Breakout above resistance at 838p to trade 840p (at time of writing).
• The ‘trend is your friend’. Will it continue towards March highs of 891p?
• Shares -5.7% from 2019 highs; +12.8% from 2019 lows; +10.1 year-to-date.
• 30 Apr: Reaches agreement with unions in Massachusetts
• 11 Apr: Trading in line with views
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading National Grid – 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 National Grid using a CFD, at the current price of 840p. To do this, you need £2,000.

Let’s assume the National Grid trend continues to 891p highs (+6%). Your profit would be £600, 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. National Grid breaks lower, falling 3% and it hits your stop-loss. Your loss would be £300.

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