Will Renishaw turn, or will it continue to rise beyond 5567p?

• The chart shows the price action for Renishaw since late August.
• The shares have broken above a resistance trendline at 4400p to trade 4432p (at time of writing).
• The ‘trend is your friend’. Will it continue?
• Shares -24.33% from 2018 highs; +21.86% from 2018 lows; -15.35% year-to-date.
• Renishaw makes precision measurement and process control equipment.
• 18 Oct: Company reported revenue +8% YoY and confidence in future growth.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Renishaw – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue to 5567p . You decide to buy exposure to £10,000 worth of Renishaw using a CFD, at the current price 4432p (at time of writing). To do this, you need £2,000.

Let’s assume the Renishaw trend continues upwards to 5567p recent highs (+25.6%). Your profit would be £2560, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 9% from the current price. Renishaw breaks lower, falling 9% and it hits your stop-loss. Your loss would be £900.

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