Will Crest Nicholson turn, or will it continue to rise to August high of 398p?

• The chart shows the Crest Nicholson price action since mid-October.
• Shares in a weeklong uptrend from 273p lows; now at 339p.
• Shares -41.2% from 2018 highs; +20.7% from 2018 lows; -37.7% year-to-date.
• September UK mortgage lending figures beat expectations, with £3.89bn (65.2K mortgages) taken, beating consensus of £3bn (64.75K).
• Housebuilders are bouncing back from recent lows on the back of the strong mortgage figures and in spite of Brexit uncertainty.
• In the past week, the shares have risen over 12%. Will this momentum continue?
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading Crest Nicholson – 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 Crest Nicholson using a CFD, at the current price of 339p. To do this, you need £2,000.

Let’s assume Crest Nicholson trend continues to August high of 398p (+17.4%). Your profit would be £1740, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 8% from the current price. Crest Nicholson falls 8% and hits your stop-loss. Your loss would be £800.

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