Will Taylor Wimpey turn, or will it continue to rise beyond 153p?

• The chart shows this month’s share price action for Taylor Wimpey
• The shares have broken above a resistance line at 150p to trade 151.6p (at time of writing).
• The ‘trend is your friend’. Will it continue?
• Will the shares rise back to falling highs at 162p?
• Shares -29.2% from 2018 highs; +4.7% from 2018 lows; -26.5% year-to-date.
• Brexit deal closer reduces uncertainty
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading Taylor Wimpey – 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 Taylor Wimpey using a CFD, at the current price of 151.6p. To do this, you need £2,000.

Let’s assume the Taylor Wimpey trend continues upwards to 162p (+6.8%). Your profit would be £680, 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. Taylor Wimpey 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.