Will UDG turn, or will it continue to rise towards 951p?

• Breakout beyond falling highs resistance to trade 686p (at time of writing).
• Could the breakout see the shares rally to prior highs of 951p?
• Shares -0.3% from 2019 highs; +26.1% from 2019 lows; +15.1% year-to-date
• 29 Jan: UDG Healthcare shares rise after it says Q1 pretax profit grew
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading UDG Healthcare – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue towards 951p. You decide to buy exposure to £10,000 worth of UDG using a CFD, at the current price of 686p. To do this, you need £2,000.

Let’s assume the UDG trend continues to highs of 951p (+38.6%). Your profit would be £3860, 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. UDG 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.