Will Diageo turn, or will it maintain momentum beyond 2885p record highs?

• The chart shows Diageo price action since mid-July.
• Shares +11.5% from mid-October lows.
• Will momentum continue beyond all-time record highs of 2885p?
• Shares -3.45% from 2018 highs; +18.8% from 2018 lows; +2.8% year-to-date
• Currently trading at 2805p (as of the time of writing).
• Beverages considered both defensive in times of uncertainty and a beneficiary of global growth
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading Diageo – 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 Diageo using a CFD, at the current price of 2805p. To do this, you need £2,000.

Let’s assume Diageo trend continues beyond 2885p record highs to reach 3000p (+6.95%). Your profit would be £695, 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. Diageo 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.