Is this trend a good trading opportunity?

Will Pearson turn, or will it continue to rise to August high of 944p?

• The chart shows the Pearson price action in October.
• Shares in a week-long uptrend from 762p lows; now at 889p.
• Shares -9.74% from 2018 highs; +34.9% from 2018 lows; +20.9% year-to-date.
• London-based educational publisher has raised is FY earnings guidance in its latest trading update (17 Oct), triggering positive momentum in share price.
• In the past week, the shares have risen over 12%. Will this momentum continue?

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Trading Pearson – 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 Pearson using a CFD, at the current price of 889p. To do this, you need £2,000.

Let’s assume Pearson trend continues to August high of 944p (+6.1%). Your profit would be £610, 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. Pearson 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.