Will Restaurant Group turn, or will it continue to rise towards 162p?

• Breakout above 143p; Now trading 147p (at time of writing).
• The ‘trend is your friend’. Will it continue towards 162p?
• Shares -10.1% from 2019 highs; +33.7% from 2019 lows; +3.3% year-to-date.
• 2 May: Restaurant Group appoints Andy Hornby as new CEO
• 15 Mar: Goodbody says Wagamama to soften legacy business headwinds
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Restaurant Group – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue to . You decide to buy exposure to £10,000 worth of Restaurant Group using a CFD, at the current price 147p (at time of writing). To do this, you need £2,000.

Let’s assume the Restaurant Group trend continues upwards to 162p highs (+10.2%). Your profit would be £1020, 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. Restaurant Group 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.