Will United Utilities sturn, or will it continue to rise beyond 736p?

• The chart shows the last 5 months’ price action for United Utilities
• The shares have broken above recent highs and falling resistance to trade 736p (at time of writing).
• The ‘trend is your friend’. Will it continue?
• Will the shares rise back 813p May highs?
• 23 Oct: Ratings agency Fitch affirms United Utilities’ BBB+ ratings and stable outlook
• 28 Sept: Trading in-line with expecttaions, H1 underlying operating profit and revenues to grow
• Shares -11.6% from 2018 highs; +13.1% from 2018 lows; -11.1% year-to-date.
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading United Utilities – An Example

Let’s say the United Utilities breakout appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of United Utilities using a CFD, at the current price of 736p. To do this, you need £2,000.

Let’s assume the United Utilities trend continues upwards to 813p (+10.5%). Your profit would be £1050, 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. United Utilities 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.