Will Compass Group turn, or will it continue beyond 1608p?

• The chart shows Compass’ price action over the last 6 weeks.
• Shares in a week-long uptrend from 1500p November lows; now at 1609p.
• The shares have risen over 7% in the past week. Will this momentum continue?
• Shares -8.4% from 2018 highs; +12.9% from 2018 lows; 0.6% year-to-date.
• 1 Nov: Compass appointment new CFO for April 2019
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading Compass – 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 Compass using a CFD, at the current price of 169p. To do this, you need £2,000.

Let’s assume Compass trend continues to the 1713p Oct highs (+6.4%). Your profit would be £640, 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. Compass falls 3% and hits your stop-loss. Your loss would be £300.

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