Will National Grid turn, or will it continue to rise beyond 2018 high of 894p?

• The chart shows the National Grid price action since mid-September.
• Shares in a 6-week uptrend from 761p lows; now at 854p.
• Shares -4.4% from 2018 highs; +16.7% from 2018 lows; -2.3% year-to-date.
• 10 Oct: Berenberg say regulatory environment for utility companies is “reasonable” and there are growth opportunities on both sides of the Atlantic.
• 8 Nov: Latest results were mixed, but the utility company backed its FY asset growth forecast.
• Since late September, the shares have risen over 12%. Will this momentum continue?

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Trading National Grid – 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 National Grid using a CFD, at the current price of 854p. To do this, you need £2,000.

Let’s assume National Grid trend continues to 2018 high of 894p (+4.7%). Your profit would be £470, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price. National Grid falls 2% and hits your stop-loss. Your loss would be £200.

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