Will London Stock Exchange turn, or will it continue to rise towards September’s 4806p highs?

• The chart shows London Stock Exchange price action since early July.
• Shares trading close to 2019 highs; +9.6% from 2019 lows; +9% year-to-date.
• Shares have rallied close to 17% since Christmas.
• Now trading at 4428p (at the time of writing)
• 14 Dec: LSE increased its stake in the LCH clearing house to 82.6%
• Will the strong positive momentum continue?
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading London Stock Exchange – 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 London Stock Exchange using a CFD, at the current price of 4428p. To do this, you need £2,000.

Let’s assume the London Stock Exchange trend continues to September’s 4806p highs (+8.5%). Your profit would be £850, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price. London Stock Exchange falls 4% and hits your stop-loss. Your loss would be £400.

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