Will Mediclinic turn, or will it continue to rise beyond 476p October highs?

• The chart shows Mediclinic price action since mid-October.
• Shares  close to +20% in the past week, now at 407p (at the time of writing). Will this momentum continue?
• Shares -45.33% from 2018 highs; +15% from 2018 lows; -37.3% year-to-date.
• Shares rebounding after a sell-off following rumours that rival Spire Healthcare might be subject of a private-equite takeover (1 Nov).
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading Mediclinic – 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 Mediclinic using a CFD, at the current price of 407p. To do this, you need £2,000.

Let’s assume the Mediclinic trend continues to October highs of 476p (+17%). Your profit would be £1700, 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. Mediclinic  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.