Will United Utilities turn, or will it continue to rise towards 826p?

• Breakout above 794p to trade 797p (at time of writing).
• The ‘trend is your friend’. Will it continue towards May 826p highs?
• Shares -4.4% from 2018 highs; +22.4% from 2018 lows; +8.4% year-to-date.
• 21 Nov: UU keeps its appeal for income-seekers, says Hargreaves Lansdown
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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 797p. To do this, you need £2,000.

Let’s assume the United Utilities trend continues upwards to 826p (+3.6%). Your profit would be £360, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price. United Utilities falls 2% and it hits your stop-loss. Your loss would be £200.

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