Will Barratt Developments turn, or will it continue to rise to Dec ’17 highs around 661p?

• Shares +37.5% since mid-December.
• 26 Feb: Housebuilders rally on the The Times report on Brexit deadline extension.
• 26 Feb: Construction sector benefits from Persimmon’s positive FY results.
• Now trading 591p (at the time of writing).
• Will the positive momentum continue towards Dec ’17 highs around 661p?
• Shares trading at 2019 highs; +14.8% from 2019 lows; +11.4% year-to-date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Barratt Developments – 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 Barratt Developments using a CFD, at the current price of 591p. To do this, you need £2,000.

Let’s assume the Barratt Developments trend continues to Dec ’17 highs around 661p (+11.8%). Your profit would be £1180, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at4% from the current price. Barratt Developments falls 4% and hits your stop-loss. Your loss would be £400.

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