Will Taylor Wimpey turn, or will it continue to rise towards 175p?

• Breakout above 159p to trade 162.5p (at time of writing).
• The ‘trend is your friend’. Will it continue towards Sept 175p highs?
• Shares -22.6% from 2018 highs; +28.3% from 2018 lows; -19.6% year-to-date.
• 16 Jan: UK Home-Builders rally after results from Bovis
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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 162.5p. To do this, you need £2,000.

Let’s assume the Taylor Wimpey trend continues upwards to 175p (+7.7%). Your profit would be £770, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Taylor Wimpey falls 3% and it hits your stop-loss. Your loss would be £300.

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