Is this trend a good trading opportunity?

Will Croda turn, or will it continue to rise to 5,328p October highs?

• The chart shows the Croda price action over the past month.
• Shares in a week-long uptrend from 4,394p October lows; now at 4,823p.
• Shares -11.4% from 2018 highs; +12% 2018 lows; +9% year-to-date.
• In the last week, the shares have risen 7%. Will this momentum continue?

Click to enlarge

Trading Croda – 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 Croda using a CFD, at the current price of 4,823p. To do this, you need £2,000.

Let’s assume Croda trend continues to 5,328p March highs (+10.4%). Your profit would be £1,040, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 7% from the current price. Croda rises 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.