Will St James’s Place turn, or will it continue to rise beyond 1027p?

• The chart shows this month’s share price action for St James’s Place
• The shares have broken above a resistance line at 1009p to trade 1027p (at time of writing).
• The ‘trend is your friend’. Will it continue?
• Will the shares rise back to November highs of 1076p?
• Shares -21.7% from 2018 highs; +5.1% from 2018 lows; -16.2% year-to-date.
• 23 Oct: St. James’s Place growth still strong says Panmure
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading St James’s Place – 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 St James’s Place using a CFD, at the current price of 1027p. To do this, you need £2,000.

Let’s assume the St James’s Place trend continues upwards to 1076p (+4.8%). Your profit would be £480, 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. St James’s Place 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.