Will Hill & Smith turn, or will it continue to rise to 1525p?

• The chart shows the Hill & Smith price action since the beginning of November.
• Shares in a monthlong uptrend from 875p October lows; now at 1167p.
• Shares -27.2% from 2018 highs; +27.6% from 2018 lows; -12.9% year-to-date.
• Hill & Smith is a supplier for engineering and construction sector.
• 22 Nov: Brokers at Peel Hunt say the latest update shows how the decline in its share price after the August interim results was an overreaction by the market.
• In the last month, the shares have risen over 26%. Will this momentum continue?

Click to enlarge

Trading Hill & Smith– 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 Hill & Smith using a CFD, at the current price of 1167p. To do this, you need £2,000.

Let’s assume Hill & Smith trend continues to 1525p (+30.6%). Your profit would be £3060, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 9% from the current price. Hill & Smith falls 9% and hits your stop-loss. Your loss would be £900.

This is provided for information purposes only. It should not be taken as a recommendation.