Sage
Is this breakout a good trade for you?
Will Sage turn, or will it continue to rise towards 825p?
- Breakout above 671p Aug highs; Now trading 682p (at time of writing).
- Could they recover to prior highs of 825p?
- Shares -0.7% from 2019 highs; +19.3% from 2019 lows; +13.5% year-to-date
- 18 Jan: Cloud transition on track, says Goldman Sachs
- 17 Jan:Off to a good start in FY19 says Bryan Garnier
- 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 towards 825p. You decide to buy exposure to £10,000 worth of Sage using a CFD, at the current price of 682p. To do this, you need £2,000.
Let’s assume the Sage trend continues to highs of 825p (+20.9%). Your profit would be £2290, 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.