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

• Breakout above resistance at 682p to trade 702p (at time of writing).
• Could the breakout see the shares rally to prior highs of 951p?
• Shares -1.1% from 2019 highs; +28.9% from 2019 lows; +17.6% 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 702p. To do this, you need £2,000.

Let’s assume the UDG trend continues to highs of 951p (+35.4%). Your profit would be £3540, 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.