Will Redrow turn, or will it continue to rise to Sept highs of 611p?

• Breakout above resistance at 577p to trade 585p  (at time of writing).
• The ‘trend is your friend’. Will it continue towards 611p?
• Shares -12.8% from 2018 highs; +27.4% from 2018 lows; +19.7% year-to-date.
• 7 Nov: Redrow reports avg selling price +4.6%, Chairman to step down
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Redrow – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue to 611p . You decide to buy exposure to £10,000 worth of Redrow using a CFD, at the current price 585p (at time of writing). To do this, you need £2,000.

Let’s assume the Redrow trend continues upwards to 611p Sept highs (+4.4%). Your profit would be £440, 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. Redrow 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.