Will Smiths Group turn, or will it continue to rise toward 1597p highs?

• The chart shows share price action for Smiths Group since September.
• The shares have broken above resistance at 1438p.
• Now trading 1444p (at time of writing).
• The ‘trend is your friend’. Will it continue? Will the shares rally back to highs of 1598p?
• Shares -20.0% from 2018 highs; +15.2% from 2018 lows; +6.0% year-to-date.
• 14 Nov: Citi says Smiths’ planned medical divestment is a shot in the arm
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Smiths Group – 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 Berkeley Group using a CFD, at the current price of 1444p. To do this, you need £2,000.

Let’s assume the Berkeley Group trend continues toward 1597p highs (+10.6%). Your profit would be £1060, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price. Berkeley Group breaks lower, falling 4% and hits your stop-loss. Your loss would be £400.

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