Will Direct Line turn, or will it continue to rise to May ’18 highs around 378p?

• Shares +18.5% since Christmas.
• Broken above 345p Jul ’18 highs.
• Now trading 355p (at the time of writing).
• Will the positive momentum continue towards May ’18 highs around 378p?
• Shares trading at 2019 highs; +14.8% from 2019 lows; +11.4% year-to-date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Direct Line – 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 Direct Line using a CFD, at the current price of 355p. To do this, you need £2,000.

Let’s assume the Direct Line trend continues to May ’18 highs around 378p (+6.4%). Your profit would be £570, 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. Direct Line 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.