Will Tate & Lyle turn, or will it continue to rise beyond 701p?

• The chart shows the last 2 years’ price action for Tate & Lyle
• The shares have broken above a resistance level at 685p to trade 701p (at time of writing).
• The ‘trend is your friend’. Will it continue?
• Will the shares rise back to Oct 2016 highs of 802p?
• Shares -2.5% from 2018 highs; +32.5% from 2018 lows; -0.2% year-to-date.
• 8 Nov: Tate ups dividend and reiterates FY profits guidance
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

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 701p. To do this, you need £2,000.

Let’s assume the Tate & Lyle trend continues upwards to 802p (+14.4%). Your profit would be £1440, 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 lower, 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.