Is this trend a good trading opportunity?

Will DCC turn, or will it continue to march upwards beyond 7,770p?

• The chart shows price action since the beginning of the year.
• Shares in a 2-week uptrend, currently trading at 7,435p (as of the time of writing).
• DCC shares are -4.9% from 2018 highs; +14.5% from 2018 lows; flat year-to-date.
• Broke above July’s previous highs.
• Shares in strong positive momentum, +7.3% in the last week.  Will the momentum continue?

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Trading DCC– 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 DCC using a CFD, at the current price of 7,435p. To do this, you need £2,000.

Let’s assume DCC trend continues to 7,770 January highs (+4.5%). Your profit would be £450, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% below the current price. DCC 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.