Will Standard Life Aberdeen turn, or will it continue to rise beyond 274p?

• The chart shows the price action for Standard Life Aberdeen since late November.
• The shares have broken above resistance at 248p to trade 251p (at time of writing).
• The ‘trend is your friend’. Will it continue?
• 12 Dec: Brokers at Jefferies say Standard Life Aberdeen’s core business and platforms are being undervalued by investors and remain a ‘value play’.
• Shares -44.5% from 2018 highs; +12.8% from 2018 lows; -42.5% year-to-date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Standard Life Aberdeen – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue to 274p. You decide to buy exposure to £10,000 worth of Standard Life Aberdeen using a CFD, at the current price 251p (at time of writing). To do this, you need £2,000.

Let’s assume the Standard Life Aberdeen trend continues upwards to 274p (+9.1%). Your profit would be £910, 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. Standard Life Aberdeen breaks lower, falling 4% and it hits your stop-loss. Your loss would be £400.

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