Is this trend a good trading opportunity?

Will Just Group turn, or will it continue to gain momentum toward 96p level?

• The chart shows price action in late August and September.
• Shares are currently down 48% from 2018 highs, but have bounced +30% from 2018 lows, -49% year-to-date
• Currently trading at 86.9p (as of the time of writing).
• Just Group shares fell since July on worries that new proposed regulations on lifetime mortgages could impact company’s capital position.
• Shares found support and rose sharply in the past week on news that competitor Rothesay agreed to buy £860m of lifetime mortgages from state-owned UK Asset Resolution (Source: FT).
• Strong recent momentum, +25.1% in the past 10 days. Will the momentum continue?

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Trading Just Group – 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 Just Group using a CFD, at the current price of 86.9p. To do this, you need £2,000.

Let’s assume Just Group trend continues to 96p, last seen in late August (+10.4%). Your profit would be £1,040, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 6% below the current price. Just Group falls 6% and hits your stop-loss. Your loss would be £600.

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