Will Direct Line turn, or will it continue to rise to 2018 highs around 397p?

• Shares +21% since Christmas.
• Now trading 362p (at the time of writing).
• Will the positive momentum continue towards 2018 highs around 397p?
• Shares -0.9% from 2019 highs; +16.3% from 2019 lows; +13.6% year-to-date.
• 5 Mar: Insurer’s results beat market expectations, say brokers at Canaccord.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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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 362p. To do this, you need £2,000.

Let’s assume the Direct Line trend continues to 2018 highs around 397p (+9.6%). Your profit would be £960, 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.