Will Softcat turn, or will it continue towards fresh all time highs?

• Breakout above 946p to trade 974p  (at time of writing).
• The ‘trend is your friend’. Will it continue towards 1100p?
• Shares -1.1 from 2018 highs; +72.8% from 2018 lows; +65.7% year-to-date.
• 29 April: Softcat  Started at Add by Numis
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Softcat – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue to 1100p . You decide to sell exposure to £10,000 worth of Softcat using a CFD, at the current price 974p (at time of writing). To do this, you need £2,000.

Let’s assume the Softcat trend continues upwards to 1100p (+12.9%). Your profit would be £2860, 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. Softcat breaks higher, rising 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.