Is this breakout a good trade for you?

Will RELX turn, or will it continue to rise beyond 1540p?

• The chart shows this month’s price action for RELX.
• The shares have broken above a horizontal resistance level around 1528p to trade 1539p (at time of writing).
• The ‘trend is your friend’. Will it continue?
• Bullish ascending triangle reversal pattern?
• Will the shares rise back to 1627p October highs?
• Shares -37.5% from 2018 highs; +85.2% from 2018 lows; +18.8% year-to-date.
• 25 Oct: RELX backs FY profits guidance, after 9-month revenues climb 4%
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading RELX – An Example

Let’s say the RELX breakout appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of RELX using a CFD, at the current price of 1539p. To do this, you need £2,000.

Let’s assume the RELX trend continues upwards to 1627p (+5.7%). Your profit would be £570, 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. RELX 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.