Informa
Is this trend a good trading opportunity?
Will Informa turn, or will it continue beyond 567p June 2016 lows?
- The chart shows Informa’s price action since late November.
- Shares in a 2-week downtrend from 717p December highs; now at 630p.
- The shares have fallen over 14% in the past month. Will this momentum continue?
- Shares -26.7% from 2018 highs; now trades at 2018 lows; -12.8% year-to-date.
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Informa – An Example
Let’s say the trend appeals to you, you think it’s likely to continue. You decide to sell exposure to £10,000 worth of Informa using a CFD, at the current price of 630p. To do this, you need £2,000.
Let’s assume Informa trend continues to the 567p June 2016 lows (-10%). Your profit would be £1000, 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. Informa rises 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.