Meggitt
Is this trend a good trading opportunity?
Will Meggitt turn, or will it maintain momentum to 576p October highs?
- Shares +20.3% since Christmas.
- 21 Jan: Aerospace company signed a $750m supply deal wtih Pratt & Whitney
- Now trading 543p (at the time of writing).
- Will the positive momentum continue towards 576p October highs?
- Shares -0.9% from 2019 highs; +18.7% from 2019 lows; +15.5% year-to-date.
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
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Trading Meggitt – 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 Meggitt using a CFD, at the current price of 543p. To do this, you need £2,000.
Let’s assume Meggitt trend continues to 576p October highs (+6%). Your profit would be £600, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 3% below the current price. Meggitt falls 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.