Will Prudential turn, or will it continue to rise towards Sept. highs of 1819p?

• Breakout above 1643p to trade 1668p  (at time of writing).
• The ‘trend is your friend’. Will it continue towards 1819p?
• Shares -0.5% from 2019 highs; +23.1% from 2019 lows; +21.2% year-to-date.
• Financial stocks seeing a revival of interest. Breakout after pause.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Prudential – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue to 1819p . You decide to buy exposure to £10,000 worth of Prudential using a CFD, at the current price 1668p (at time of writing). To do this, you need £2,000.

Let’s assume the Prudential trend continues upwards to 1819p (+9.0%). Your profit would be £900, 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. Prudential 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.