Will Prudential turn, or will it continue to rise towards highs of 1760p (+4.2%)?

• Breakout above 1683p to trade 1688p  (at time of writing).
• The ‘trend is your friend’. Will it continue towards 1760p(+4.2%)?
• Shares -5.6% from 2019 highs; +26.5% from 2019 lows; +20.5% year-to-date.
• Financial stocks seeing a revival of interest amid hopes of a trade war calm and more stimulus from central banks
• 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 1760p . You decide to buy exposure to £10,000 worth of Prudential using a CFD, at the current price 1688p (at time of writing). To do this, you need £2,000.

Let’s assume the Prudential trend continues upwards to 1760p (+4.2%). Your profit would be £420, 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. Prudential 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.