Is this breakout a good trade for you?

Will Tate & Lyle turn, or will it continue to break upwards beyond 688p?

• The chart shows the last 2.5 month’s price action for Tate & Lyle.
• The shares have broken above a resistance line at 676p to trade 688p.
• The shares are trading their best since mid-May.
• The ‘trend is your friend’. Will it continue?
• Shares -4.2% from 2018 highs; +29.2% from 2018 lows; -1.9% year-to-date.
• 1 June: Liberum says Tate & Lyle to deliver solid earnings margin growth.

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Trading Tate & Lyle – 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 Tate & Lyle using a CFD, at the current price of 688p. To do this, you need £2,000.

Let’s assume the Tate & Lyle trend continues towards 2017 highs of 795p (+15.5%). Your profit would be £1550, 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. Tate & Lyle breaks down, 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.