Will Sage turn, or will it continue to rise beyond 619p?

• The chart shows the price action for Sage since August .
• The shares have broken above a resistance trendline at 609p to trade 619p (at time of writing).
• The ‘trend is your friend’. Will it continue towards August highs of 676p
• Shares -26.2% from 2018 highs; +23.9% from 2018 lows; +3% year-to-date.
• 4 Dec: Sage names Jonathan Howell Chief Financial Officer
• 21 Nov: Shore Capital says Sage makes progress in cloud transition ahead of investment
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Sage – 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 Sage using a CFD, at the current price 619p (at time of writing). To do this, you need £2,000.

Let’s assume the Sage trend continues upwards to 676p August highs (+9.2%). Your profit would be £920, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Sage breaks lower, falling 5% and it hits your stop-loss. Your loss would be £500.

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