Is this trend a good trading opportunity?

Will Ashtead turn, or will it continue to rise beyond 2,461p September highs?

• The chart shows Ashtead price action over the last 3 weeks.
• Company’s exposure to the recently volatile US market has pulled the shares down.
• Ashtead makes 92% of its profits in the US.
• Recent Q1 results beat market expectations, opening the door to a potential bounce back from pas week’s sell-off.
• Shares -16.5% from 2018 highs; +10% from 2018 lows; flat year-to-date.
• Shares in a sustained downtrend, falling -16.5% over the past week. Will this momentum continue?

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Trading Ashtead – An Example

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

Let’s assume Ashtead trend continues to September highs of 2,461p (+23%). Your profit would be £2,300, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 10% from the current price. Ashtead falls 10% and hits your stop-loss. Your loss would be £1,000.

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