Will Pearson turn, or will it continue to rise beyond 2018 highs of 973p?

• The chart shows the Pearson price action in October.
• Shares in a 8-week uptrend from 762p lows; now at 954p.
• Shares -2% from 2018 highs; +46.45% from 2018 lows; +29.7% 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 5 weeks, the shares have risen over 14%. 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 954p. To do this, you need £2,000.

Let’s assume Pearson trend continues to 1000p (+4.8%). Your profit would be £480, 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. Pearson 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.