Is this breakout a good trade for you?

Will QinetiQ turn, or will it continue to break upwards beyond 324p?

• The chart shows the last 16 months price action.
• It has recently broken above the key 279p level.
• The ‘trend is your friend’. Will it continue?
• On 25 July the company said underlying trading in the first quarter was in line with expectations and that its expectations for the current fiscal year remain unchanged.
• The company operates in global aerospace, defense and security sectors.

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Trading QinetiQ – 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 QinetiQ using a CFD, at the current price of 296p. To do this, you need £2,000.

Let’s assume QinetiQ trend continues to 324p. Your profit would be £946, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price, at 281p. QinetiQ trend breaks down, falling 5% and it hits your stop-loss. Your loss would be £500.

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