Will Melrose turn, or will it continue to rise towards previous 226p highs?

• Shares +33% from February lows; Now 202p (at the time of writing).
• Will the positive momentum take them to previous highs of 226p?
• Shares -1.6% from 2019 highs; +31.2% from 2019 lows; +23.5% year-to-date.
• 7 Mar: Melrose Industries Raises Dividend to 4.6p.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Melrose– 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 Melrose using a CFD, at the current price of 202p. To do this, you need £2,000.

Let’s assume the Melrose trend continues to previous 226p highs (+11%). Your profit would be £1100, 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. Melrose 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.