Will Taylor Wimpey turn, or will it continue to rise towards 203p?

• Breakout above 170p to trade fresh 6 month highs
• Now trading 175p (at time of writing).
• Shares -0.3% from 2019 highs; +30.6% from 2019 lows; +28.5% year-to-date
• 27 Feb: Shares +2% after FY results; ordinary dividend +56%, special +2.9%
• 26 Feb: UK housebuilder shares strong on Brexit optimism
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Taylor Wimpey – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue towards 203p. You decide to buy exposure to £10,000 worth of Taylor Wimpey using a CFD, at the current price of 175p. To do this, you need £2,000.

Let’s assume the Taylor Wimpey trend continues to highs of 203p (+16%). Your profit would be £1600, 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 breaks lower, falling 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.