Burberry
Is this trend a good trading opportunity?
Will Burberry turn, or will it maintain momentum to 2338p 2018 highs?
- Shares +20.9% since Christmas.
- 12 Jan: Record earnings from French luxury retailer Kering is helping Burberry’s momentum
- Now trading 1924p (at the time of writing).
- Will the positive momentum continue towards 2338p 2018 highs?
- Shares trading at 2019 highs; +17.9% from 2019 lows; +10.7% year-to-date.
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
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Trading Burberry – 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 Burberry using a CFD, at the current price of 1924p. To do this, you need £2,000.
Let’s assume Burberry trend continues to 2338p 2018 highs (+21.5%). Your profit would be £2150, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 7% below the current price. Burberry falls 7% and hits your stop-loss. Your loss would be £700.
This is provided for information purposes only. It should not be taken as a recommendation.