Will Safestore turn, or will it continue to rise beyond 561p?

• The chart shows price action for Safestore since early November.
• The shares have broken above resistance at 537p
• Currently trading at 539p (at time of writing).
• The ‘trend is your friend’. Will it continue?
• Shares -9.8% from 2018 highs; +13.4% from 2018 lows; +8% year-to-date.
• 15 Nov: Full-year results pleased investors, +5.2% YoY like-for-like revenue growth.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Safestore – 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 Safestore using a CFD, at the current price of 539p. To do this, you need £2,000.

Let’s assume the Safestore trend continues to 561p November highs (+4%). Your profit would be £400, 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. Safestore 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.