Is this breakout a good trade for you?

Will Reckitt Benckiser turn, or will it continue towards summer 2017 highs of 8100p?

• The chart shows the last 6 week’s price action for Reckitt Benckiser.
• The shares have broken above a resistance line at 6975p to trade 7059p (at time of writing).
• The share trade their highest since this time last year
• The ‘trend is your friend’. Will it continue?
• Shares -1.1% from 2018 highs; +33.5% from 2018 lows; +2.1% year-to-date.
• Consumer Staples are considered defensives/non-cyclicals, safe ports in a market storm

Click to enlarge

Trading Reckitt Benckiser– 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 Reckitt Benckiser using a CFD, at the current price of 7060p. To do this, you need £2,000.

Let’s assume the Reckitt Benckiser trend continues upwards to 8100p (+14.7%). Your profit would be £1470, 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. Reckitt Benckiser 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.