IMI
Is this trend a good trading opportunity?
Will IMI turn, or will it continue to rise towards April highs of 1069p? (+6%)
- Shares +12.5% from recent; Now 1007p (at the time of writing).
- Will the positive momentum take them to April highs of 1069p (+6%)?
- Shares -5.8% from 2019 highs; +12.3% from 2019 lows; +6.7% year-to-date.
- 10 Jun: IMI is a potential takeover target, says Goldman Sachs
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading IMI – 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 IMI using a CFD, at the current price of 1007p. To do this, you need £2,000.
Let’s assume the IMI trend continues to April highs of 1069p (+6%). Your profit would be £600, from your initial investment of £2000.
Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price. IMI falls 2% and hits your stop-loss. Your loss would be £200.
This is provided for information purposes only. It should not be taken as a recommendation.